Rosenthal Collins Group LLC (RCG), a leading independent futures clearing firm, today announced that, in an effort to further increase transparency for its customers and the public, the firm is providing a daily update on how RCG invests its customers’ funds. Effective immediately and available prominently at www.RCGdirect.com, the chart describes the allocation of customer segregated funds between the various instruments in which the firm invests.
The move follows news last week of the bankruptcy of Peregrine Financial Group Inc. (PFGBest) and apparent massive customer fraud perpetrated by its chief executive officer. Beginning in December 2011, RCG was the first futures clearing firm to provide a detailed public breakdown of how customer segregated funds are invested, and it has posted monthly updates of these investments since then.
RCG, a nearly 90-year-old privately held firm, also has posted the firm’s audited financial statements on its website since the site was established many years ago.
RCG Chairman and CEO Scott Gordon said: “In light of the extraordinarily troubling news that surfaced last week, RCG is determined to go above and beyond what is required of us to provide our customers with reassurance that we are investing their funds wisely. Our philosophy has always been to offer the highest levels of transparency, and we are pleased that we are now able to provide this information to our customers on a daily basis.”
He continued: “Unquestionably, the events of the last 10 months have undermined the confidence of market participants in an industry which serves a vital role in the global economy. While we can’t singlehandedly restore that confidence, we can do our part to ensure that customers feel confident in how we handle their money. We also will continue to find new ways to provide transparency and contribute to industry solutions.”
RCG had no customer or house funds on deposit with Peregrine Financial Group Inc. (PFGBest) and has no exposure to the firm, its principals or affiliates.
