An insurance program to protect U.S. futures traders from financial losses when a brokerage collapses would come at a high cost, according to a study released on Friday.
The study, commissioned last year by exchange-operator CME Group Inc (CME.O) and three industry organizations, analyzed the potential costs and benefits of four insurance models, including government-mandated coverage. It did not make a recommendation on whether any option should be pursued.
The industry began considering insurance after the high-profile failures of brokerages MF Global in 2011 and Peregrine Financial Group in 2012 resulted in the loss of hundreds of millions of dollars in customer money. MF Global's commodity customers have since been paid back.
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