The recent bankruptcy filing of Iowa-based Peregrine Financial amid the apparent disappearance of some $200 million of client money has brought a little attention to the services of Confirmation.com, the local venture that electronically verifies that money is where people say it is. The New York Post reports that the National Futures Association has been pushing its member firms to get onto Confirmation.com's platform for months and that pressure to do so may have led Peregrine founder Russ Wasendorf to try to take his life.
Which does make you wonder why the NFA and others didn't make this push sooner...
"How did the regulators miss this?" said Lauren Nelson, spokeswomen for Attain Capital Management, a broker whose clients used Peregrine's trading business, also known as PFGBest. "It's very frustrating to be on the outside looking in and wondering where the regulators have been when all of this has been going on."
Pieces from Bloomberg and The New York Times mention that Wasendorf resisted the NFA's push to begin using Confirmation.com for his firm's dealings. The Times writes: "He fought the directive for several days, the person said, until relenting on Sunday. The N.F.A. started getting confirmations through the system Monday morning."
Futures firms, anxious about the impact of the Peregrine collapse, are considering lining up for a voluntary audit to reassure clients, according to people familiar with the effort.