Illinois | Investment Law
Legal Question
My futures broker provided an undocumented, unauthorized and illegal $ 130,000 "overdraft fascility" for a futures position. think of it like a Casino granting a $ 130,000 marker to a gambler who is unaware that he used up all he got some time ago.
Total loss: almost $ 400,000 which is basically okay, except they should jave liquidated the position instead of allowing more losses due to their own lack of risk control and oversight. AFAIK, there would be incredible systemic risk if such conduct was tolerated within the industry. Traders are already using a lot of leverage and often swing into the red by a $ 6-digit amount in a single day!
Am looking for a securities specialist to represent me.
The introducing futures broker is in CA, but the account was maintained by a Chicago IL firm.
The CFTC won't comment and there is an arbitrage clause in the contract, as usual. Still, this is something that should never ever happen!
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