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    Sentinel decision prioritizes protection of securities and futures markets
    2014-03-26

    On March 19, 2014, the U.S. Court of Appeals for the Seventh Circuit decided Grede v. FCStone, LLC, Nos. 13-1232, 13-1278 (7th Cir. Mar. 19, 2014), an opinion that reinforces the importance of the portability of investment accounts carrying commodity customer funds. The Seventh Circuit held that commodity futures customer funds must be protected in an insolvency situation, and that the release of customer funds to meet margin obligations should be upheld at all costs.

    Filed under:
    USA, Derivatives, Insolvency & Restructuring, Litigation, Foley & Lardner LLP, Bankruptcy, Security (finance), Investment management, Commodity broker, Futures exchange, Title 11 of the US Code, United States bankruptcy court, Seventh Circuit
    Authors:
    Stephen P. Bedell , Robert S. (Rob) Bressler , Geoffrey S. Goodman , David B. Goroff , Thomas P. Krebs , William J. McKenna
    Location:
    USA
    Firm:
    Foley & Lardner LLP
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