Customer Class Representatives, CME Group, And MF Global Trustee Announce
Agreements To Expedite Payments To MF Global Customers
CHICAGO, Nov. 6, 2013
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
(www.cmegroup.com) 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
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 www.cmegroup.com.
SOURCE CME Group
Contact: Media Contacts, Laurie Bischel, 312.648.8698, Investor Contact, John
Peschier, 312.930.8491, firstname.lastname@example.org, www.cmegroup.mediaroom.com
Press spacebar to pause and continue. Press esc to stop.