The answer to the frequently asked question:
What policies does Straits have in place to address the safety of a client's funds?
1. Unlike MF, Straits does not Proprietary trade nor do they clear or parent or affiliate proprietary business. Straits is solely focused on facilitating the execution and clearing of our customer’s futures transactions.
2. Straits does not engage in any Swaps and they are not a SEC-registered Broker Dealer. If they were a dually registered FCM like MF and like many of our FCM competitors, Straits could use the same $1 in equity capital twice – for securities and futures at the same time. This “double-dipping” is currently permitted but is thankfully under serious regulatory review. It lessens the FCM’s ability to protect its customers assets.
3. The CFTC surveyed all FCMs just recently to determine their exposure to foreign bonds, internal repos, swaps, esoteric derivatives, etc. with a view to curtailing them.
4. Straits responded that all of its Capital and all of its customer funds were held in Cash.
5. Straits has no intention of deviating from this policy. They are willing to forego additional Interest Income by not entering into any other security other than cash and, in the future, US Treasuries. Managing this policy is:
a. Joseph Mazurek, President Straits Financial LLC
b. Paul Fry, Chief Operating Officer Straits Financial LLC
c. Christine Lofland, Chief Financial Officer Straits Financial LLC