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Veteran Advisor

Re: OptionEye...Nov 21 MF Global

I talked to a farmer-friend last night that has lost money in this MF Global deal. He says the broker he was working with was trading through MF Global. So, his account has been transferred to another firm,  but  his money that he had in-play through MF Global has not been returned. He said he doesn't have a whole lot involved but enough. He was shaking his head, in frustration, the whole time he was talking about it.

 

Meanwhile, the CME Group co-chairmen released a statement Wednesday saying the increased shortfall amounts being reported are not true. Here's the letter the exchange chairs sent out to customers:

 

To accelerate the return of additional securely held funds to MF Global Inc. customers, CME Group today increased its financial guarantee to the SIPC Trustee from $250 million to $550 million . Our guarantee is designed to increase the payout percentage to all customers from 60 percent to 75 percent in early December, resulting in the return of roughly $4 billion of the $5.5 billion that was supposed to be held by MF Global in segregation. Under our proposal, the entire $2.5 billion securely held at CME Clearing will be distributed.
In addition, while the final accounting of customer segregated assets and claims will occur in the bankruptcy process, we can assure you that CME Group is confident that recent reports of significantly larger customer segregated shortfalls are incorrect.
As always, the protection of our customers and the integrity of all futures markets continue to be our two chief concerns. In the four weeks since the failure of MF Global, CME Group has been the only exchange and clearing house to offer a financial guarantee to help return funds to all customers. We transferred 15,000 accounts and $1.45 billion in collateral through the bulk transfer process, we previously offered a $250 million guarantee that facilitated approval of additional distributions, and now we are increasing our guarantee to $550 million to accelerate the return of substantial cash to MF Global customers.
We're pleased to be able to assist customers in recovering up to 75 percent of their segregated assets at this time, and we will continue to seek the recovery of additional customer funds. We will continue to keep you updated throughout this process, and we will continue to post information on this matter to www.cmegroup.com/mfglobal.

 

 

Mike

 

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Veteran Contributor

Re: OptionEye...Nov 21 MF Global

Dear CME,

 

Who dropped the ball on this issue? 

 

Segregated assets means segregated.  Someone is responsible for stealing money here yet no one has been arrested.  What type of compliance do you have and how do hedgers and traders trust other FCM's are not doing the same thing as Global did?  It's obvious the CME and CFTC(what's new) wasn't doing their job or this wouldn't have occurred.

 

 

Dafeeder

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Veteran Advisor

Re: OptionEye...Nov 21 MF Global

Feederthat is the real question what is the CME doing to put trust bask inot the system? Nothing!

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Highlighted
Contributor

Re: OptionEye...Nov 21 MF Global

If they are so confident that "recent reports of significantly larger customer segregated shortfalls are incorrect" they should step up and guarantee the whole wad, not piecemeal there way to it.