CME Group opens registration for Farmer Protection Fund

April 3, 2012 08:43 AM

CME Group opened registration for its Family Farmer and Rancher Protection Fund today. Announced on Feb. 2, the fund was created in response to segregated commodity customer funds disappearing in the wake of MF Global's bankruptcy. The $100 million fund provides assurance to farmers and ranchers that in the event of another future event like MF Global, CME Group will back individuals up to $25,000 and cooperatives up to $100,000 if they were using CME Group's products.

Previously, Craig Donohue, CME Group, Inc. CEO, had said the fund was created to restore confidence in the markets, especially for farmers and ranchers.

“Many have been hurt by MF Global’s bankruptcy,” CME Group Executive Chairman Terry Duffy said in a press release. “Though all the facts are not yet in, we do know our industry needs to focus on enhancing protections for customer segregated monies held at the firm level. ... In the meantime, we believe this targeted first step is important to reassure hedgers so they can appropriately manage their risks and avoid business disruptions.”

Clearing members and eligible farmers much register with CME Group prior to an event occuring and must provide certain documentaion.

Family Farmer and Rancher Protection Fund registration at CME Group

About the Author

Web Editor/Assistant Editor Michael McFarlin joined Futures in 2010, after graduating summa cum laude from Trinity International University, where he majored in English/Communication. With the launch of the new web platform, Michael serves as web editor for the site and will continue to work on the magazine, where he focuses on the Markets and Trading 101 features. He also served as a member of the Wisconsin National Guard from 2007 to 2010.