Since the failures of MF Global and PFG, CME Group has worked closely with futures industry leaders to restore customer confidence and strengthen the protection of customer segregated funds.
Together, CME Group, the NFA and the CFTC worked together to institute, in order to deter the misuse of customer funds, including:
- Daily segregation reporting by all FCMs.
- Bi-monthly reporting on investment of segregated funds.
- Increased surprise reviews of customer segregated funds.
- Ability to electronically confirm firms' customer seg balances.
- New rules providing direct, online access to firm bank accounts for confirmations.
- CEO/CFO accountability for disbursements of more than 25 percent of the firm's excess segregated funds which are not for the benefit of a customer, plus notification to the DSRO of such disbursements.
CME Group has also updated NIBA on its Family Farmer and Rancher Protection Fund, a $100 million fund CME Group established to provide further protection for U.S. family farmers, family ranchers and their cooperatives that hedge their business in its agricultural markets. Importantly, CME Group has begun the process of paying more than $2 million in benefits to nearly 200 farmers, ranchers and cooperatives that used CME Group markets and suffered losses in the failure of PFG.
For more information, read the full story online in Futures Magazine - A year after MF Global failure, customers safer than before collapse.
