Skip to main content

Customer Segregated Funds

How We Use Your Funds

Your funds are kept separate from PhillipCapital house funds (PhillipCapital does not do any proprietary trading).  This is accomplished by depositing customer funds and customer funds only in special bank accounts called segregated accounts.  These segregated bank accounts are required by industry regulators and have been created by PhillipCapital in order to further protect customer funds. PhillipCapital utilizes its own non-trading monies to maintain a targeted residual of funds in these bank accounts.

What does this mean?

While your assets are segregated, all customer segregated funds may be commingled in a single account and held with: (i) a bank or trust company located in the U.S.; (ii) a bank or trust company located outside of the US that has in excess of $1 billion of regulatory capital; (iii) a futures commission merchant; or (iv) a derivative clearing organization. Such commingled account must be properly titled to make clear that the funds belong to, and are being held for the benefit of, the FCM’s customers.

What happens to your funds while they are segregated?

Industry regulators allow PhillipCapital to invest the funds you maintain in these segregated bank accounts.  However, PhillipCapital only invests these funds in assets which PhillipCapital determines are highly liquid, such as in cash at banks, cash at clearing houses, U.S Treasuries, and high quality liquid Money Market Funds.

Here is our latest breakdown of our funds...

Segregated & Secured Fund Investments as of October 31, 2020

BMO Harris Cash
4%
Citibank Cash
4%
CME Clearing House Cash
68%
OCC Clearing House Cash
0%
ICE US Clearing House Cash
6%
ICE EU Clearing House Cash
6%
US Treasuries
10%
Other Registered FCMs
0%
Phillip Affiliate Members of Foreign Boards of Trade
2%
Dreyfus US Govt (CME IEF2)
0%
Blackrock Fed Funds (CME IEF 2)
0%
HSBC Investor US Govt (CME IEF2 )
0%
JP Morgan US Govt ( CME IEF2)
0%
Morgan Stanley Govt ( CME IEF2)
0%
Banks Via American Financial Exchange
1%

RISK DISCLAIMER: Trading in futures products entails significant risks of loss which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies cited herein is not necessarily indicative of future performance. The information contained herein is provided to you for information only and believed to be drawn from reliable sources but cannot be guaranteed; Phillip Capital Inc. assumes no responsibility for errors or omissions. The views and opinions expressed in this letter are those of the author and do not reflect the views of Phillip Capital Inc. or its staff.