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Now finally some good news for futures market investors you had money tied up with peregrine financial.
-- -- call back in July peregrine founder and CEO Russell Watson -- senior.
Attempted suicide which set off an investigation resulting in the discovery of a twenty year fraud.
And -- shortfall of nearly 200 million dollars well now -- financial brokerage.
Has been awarded the right to take over those thousands of customer accounts in an effort to allow peregrine customers to access funds that have been tied up since its collapse.
Howard rock name is isn't financials market CEO and president and he joins me now exclusively.
And I suppose in the interest of fair disclosure and to explain our uncanny -- and physical similarities.
We're actually second cousins nice once removed once removed -- it's great to have you here with us thanks for coming it her viewers who may not be as familiar with -- financial tell me that your firm and why you think that the -- -- trustee actually.
-- is vision out of three brokerage is not correct to take over the peregrine accounts okay.
I think this is it exciting times for us and and the visit the vision is.
Mortal competitor if you might call it -- PF she over the last twenty years we've Bennett.
We have many similar products and services.
Many of the customers.
And we share similar platforms sometimes the same.
And Greece have similar.
Managed programs that that customers.
Have participated in.
And I think more than anything else we just -- in that space.
It's an easy transition and for the week as we expected to be very easy -- you've got according to the trustee's website at pfc clients are owed 410 million dollars from your firm vision will get 125 million to distribute.
With possibly another 65 million to distribute later other guidelines on which customers get priority how -- gonna do this distribution process okay.
The trustee will send.
If there's still working out the final amounts but it.
If it should be approximately a 125 million dollars to customers are yes -- 410 million dollars.
They will instruct us on what to.
Credit each respective customer so it's not gonna be us making that decision will be coming from the trustee and they will give us that appropriate -- -- -- the remaining funds will you be able to make some decisions advise these clients to hopefully gain back in Knight deal saying right these lost funds in some sort of transaction.
We we hope so and we're hoping that.
As we develop and expand the relationships with the customers and their respective brokers.
In in a way as an advocate for them.
And there is any.
Fear amount of money it's not gonna recover them in -- but there's a fair amount of money that's still.
Up for question on whether it will be allocated to them.
Whether or not if -- be recovered -- Also the last twelve months have been -- -- for the futures trading industry as you are well aware you have the peregrine situation also sought MF global implode.
Hang -- was taken over by Knight capital Knight capital had trading problems of its own.
Client trust has to be a problem -- tangled with the regulators envision yourself.
No question the last twelve months we the whole industry has a big black guy although I think.
With stop making a little -- on the hill at a very fast pace unfortunately.
It takes only a few bad apples and we've had.
Three instances the good news is that -- and while they did meltdown and they got taken over by night no customer money was lost.
And that work to waive the regulations.
But I would imagine how that you're inheriting.
Thousands of customers were really ticked off because they husband's money with peregrine right so what are you doing to stabilize fan and make them feel confident in the services you're going to provide.
The customers are not happy and we don't expect them to be happy and it's a terrible tragedy to lose potentially up to seventy cents on the dollar.
Clients of the commodity market.
We have been and advocated and we've been in the futures market for 22 years we've service upwards that the 100000.
Clients and then some.
And these other markets we know we know what -- needs are and it's just going to be a matter of time to give them the comforted and bill back to relationships and trust it's just timing though.
Working its way toward the best situation for the current.
Climate or -- looking at the election we know that regulation is in front and center in the issues that -- no question.
The regulatory environment has has got much tougher the regulators are much more aggressive than they have been in the past and I think.
That makes a whole environment -- coat.
Obviously if the election comes out one way or another bomb potentially that could change some of that landscape and.
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