CME Group increases guarantee to $550 million

“The protection of our customers and the integrity of all futures markets continue to be our two chief concerns, and today we are taking aggressive action to further assist customers and restore confidence to the marketplace,” said CME Group Chief Executive Officer Craig Donohue. “Our efforts over the last four weeks have provided greatly needed relief to all futures industry customers of MF Global, and are helping to return nearly $4 billion to customers. While customer-segregated funds at CME Clearing were protected at all times, this case illustrates that MF Global failed to adequately protect customer funds. Moving forward, CME Group will be a leading voice in developing industry-wide solutions to enhance confidence in protections for FCM-held customer collateral.”

The total 75 percent distribution to customers will include any funds already received in the bulk transfer process November 3 and 4, when 15,000 accounts were transferred with roughly $1.45 billion in collateral, and the distribution of $520 million in cash-only account balances approved by the Court on November 17 and expected to be completed next week.

CME Group is using a number of channels to communicate with customers as soon as information is available and will continue to provide updates throughout the process through its clearing members and on its website for this matter, www.cmegroup.com/mfglobal.

The information in this statement does not apply to any other MF Global entity, including separate insolvency proceedings involving the parent company, MF Global Holdings Ltd. or non-US affiliates of MF Global.

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