This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Customer Class Representatives, CME Group, And MF Global Trustee Announce Agreements To Expedite Payments To MF Global Customers

CHICAGO, Nov. 6, 2013 /PRNewswire/ -- CME Group, Inc. (CME), the Customer Class Representatives in the ongoing MF Global multi-district litigation (Customer Representatives), and James W. Giddens, Trustee for the Securities Investor Protection Act (SIPA) liquidation of MF Global Inc. (MFGI) today announced agreements that will resolve any claims by or against CME Group in connection with the MF Global matter, and will further help expedite payments to MFGI's former customers. 

In an agreement between the Trustee and CME, CME will be allowed to assert a $29 million claim against MFGI based on expenses incurred by CME as a result of MFGI's bankruptcy.  CME's claim was reserved under the prior settlement agreement between CME and the Trustee that allowed the return of over $161 million to the Trustee.  Pursuant to an agreement approved by the bankruptcy court, CME Group previously deferred its right to payment of any of its claims against MFGI until all customer account balance claims have been paid in full and that continues to be the case. 

In a separate agreement between CME and the Customer Representatives, CME has agreed to deliver $14.5 million, one-half of the distribution that it will receive from the Trustee, to the Customer Representatives for distribution to MFGI's former customers.

On behalf of the Customers, Co-Lead Counsel Andrew Entwistle and Merrill Davidoff observed: "This settlement marks an additional commitment by the CME to the Customers of MF Global, which previously included the CME Trust's $50 million contingent commitment and the CME's $100 million commitment to farmers.  This settlement dovetails nicely with our related settlement of the Customers' net equity claims against MFGI which will result in the Customers receiving the return of 100 percent of their net equity claims, though significant damages to the Customers and General Estate remain. This settlement allows us to continue our focus on MF Global's former officers and directors and the company's former auditor PwC.  It is time for those defendants to pay for their improper behavior."

"We are pleased that today's agreements help customers to finally recover the balance of their property," said CME Group Executive Chairman and President Terry Duffy.  "Though CME Group fulfilled all of its responsibilities as a self-regulatory organization, these agreements provide a quicker resolution for our customers – giving them more money back sooner, rather than working through prolonged litigation.  Today's announcement is in keeping with other actions we took to assist our clients after the MF Global failure – issuing a $550 million guarantee to the Trustee to speed the return of customer property, pledging $50 million in assets of CME Trust to offset our customers' losses if necessary, and establishing the $100 million Family Farmer and Rancher Protection Fund to provide additional protection to the nation's farmers and ranchers."

The agreements are subject to court approval before they can become effective, and will be presented for approval, as appropriate, to Bankruptcy Court Judge Martin Glenn and District Court Judge Victor Marrero

As the world's leading and most diverse derivatives marketplace, CME Group ( is where the world comes to manage risk.  CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate.  CME Group brings buyers and sellers together through its CME Globex ® electronic trading platform and its trading facilities in New York and Chicago.  CME Group also operates CME Clearing, one of the world's leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.

CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc.  CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc.  KCBOT, KCBT and Kansas City Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri, Inc.  All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at



Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs