Friday, January 6, 2012

The Plot Thickens: MF Global inquiry turns to CME, its primary regulator

The Chicago Trib reports that CME Group is under investigation for its handling of MF Global before the broker's collapse last October, the New York Times said. The probe by the Commodity Futures Trading Commission, reportedly focuses on whether CME did enough to safeguard client assets at the giant futures broker. Regulators are still seeking hundreds of millions of dollars of customer funds gone missing since MF Global's failure.

A spokeswoman for CME Group, the biggest operator of U.S. futures exchanges and MF Global's first-line regulator, said the company welcomed any probe.

"We haven't been notified that they are investigating us, but we would expect and frankly welcome it -- it's part of their job that they are looking at the things we did," CME spokeswoman Anita Liskey said. "We are confident that they will agree that we did our job to the best of our abilities."

CME executive chair Terrence Duffy has testified that MF Global provided false documentation to the CME about the customer funds under its control, saying it had a surplus and later correcting them to show a deficit….

Find out more at http://www.chicagotribune.com/business/breaking/chi-mf-global-inquiry-turns-to-cme-its-primary-regulator-20120106,0,6218113.story

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