CME to Require Daily Customer Fund Reports Following MF Failure
This article is for subscribers only.
CME Group Inc., the world’s largest futures exchange, will require brokers to report daily customer fund levels as $1.6 billion in client money is still missing related to the bankruptcy of MF Global Holdings Ltd.
The daily reports, to begin May 1, must be signed by the brokers’ chief executive officer, chief financial officer or their designated representative, CME Group said in a notice to its members yesterday. The exchange now gets customer segregation reports on a monthly basis from futures brokers. The loss of customer money when MF Global filed for bankruptcy protection on Oct. 31 was a first in the futures industry.