An insurance program to protect U.S. futures traders from financial losses when a brokerage collapses would come at a high cost, according to a study released on Friday, which was quickly criticized by a top U.S. regulator. Bart Chilton, a member of the U.S. Commodity Futures Trading Commission, cast doubt on the findings because the study was funded by futures-industry groups supported by firms that have opposed insurance programs. The National Futures Association (NFA), Futures Industry Association, exchange-operator CME Group Inc and the Institute for Financial Markets commissioned the study last year. It analyzed the potential costs and benefits of four insurance models, but did not make a recommendation on whether any option should be pursued. The most feasible privately run option studied seemed to be a proposal from eight insurance companies to create a captive insurance company that would offer coverage to futures customers on a voluntary basis, said Christopher Culp, who
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