FIA filed an amicus brief in the FCStone/Sentinel litigation involving the protection of customer funds that may have been moved out of futures segregated accounts. FIA’s brief focuses on protections afforded to customer segregated funds in bankruptcy situations.
The issue on appeal in the case is a U.S. district court's decision in January of 2013 ordering FCStone to return a 2007 distribution made in connection with the bankruptcy to cover certain customer funds in the segregated customer accounts of its futures commission merchant customers.
FIA's brief supported FCStone's arguments seeking to reverse the district court's decision on several grounds concerning the customer funds protections provided by the Commodity Exchange Act Section 4d, tracing requirements, the status of futures commission merchants as guarantors and initial transferees.
