Recent actions taken by the Federal Energy Regulatory Commission, including a $435 million fine of Barclays and ongoing negotiations for a settlement with JPMorgan Chase, could represent the first step in beefed up regulatory actions from the commission, according to some experts. Other analysts believe that FERC is overstepping its regulatory bounds, and could be reined in as Barclays contests its fine in court. "There's no guarantee that these cases FERC put together hold up in court," said Christi Tezak of ClearView Energy Partners.
James Giddens, the trustee for MF Global, said that distributions, which could begin in early September, could increase the amount of money returned to customers who traded on U.S. exchanges and international exchanges, with the percentage recovery reaching the upper 90s for customers on domestic exchanges, and the 60s for customers who traded on foreign exchanges. Giddens also said that he plans to file a motion with the Bankruptcy Court that could allow all commodities-futures customers of the failed firm to receive a final distribution of 100 cents on the dollar.
While JPMorgan Chase reportedly is negotiating a settlement with the Federal Energy Regulatory Commission, it appears likely that Blythe Masters, the head of the firm's commodities business, will not be charged separately with any wrongdoing, according to people briefed on the matter. The regulator could reconsider its decision, those people said, but appears not to be going forward with its contention that Masters made "false and misleading statements under oath."
Tracy Wills-Zapata, managing director, business development at Campbell & Co., says managed futures mutual funds are increasingly important, as more investors turn away from typical standard investment options. Campbell's strategy of testing market intuition with math and science and then leveraging technology to develop strategies serves clients well, Wills-Zapata said.