Indiana Grain Company, LLC

Posted: 12/09/11

By: tomgrisafi

CME Group Executive Chairman Terry Duffy appeared before the U.S. House Committee on Agriculture on Thursday to discuss the MF Global bankruptcy.

"MF Global put market users in a tragic position," said Duffy in an advance statement. "In the days leading up to MF Global's bankruptcy, daily reviews of the company's segregation reports showed the firm remained in full compliance with segregation requirements. Any transfers of customer funds, effectuated by MF Global, constitute very serious violations of our rules and of CFTC regulations."

"With respect to the unprecedented loss of customer segregated funds caused by MF Global, CME Group's efforts have been to assist customers and minimize market disruptions," Duffy added. "Our efforts have been directed toward speeding customer access to their trading accounts, transferring their positions and providing the Trustee with a $550 million guarantee from CME Group, to enable him to quickly release customer funds that were securely held at CME Clearing. Moving forward, we intend to work with the Congress, regulators and industry leaders to strengthen customer safeguards at the firm level."

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