CME Is Legally Liable For MF Global Customer Losses
By Avery Goodman: We were all overjoyed to learn Monday that the money missing from MF Global (MFGLQ.PK) customer accounts had suddenly been found. One problem. It wasn't true. About $650 million is still missing. Where is it? Nobody knows. The aftermath of the MF Global debacle has been a lesson for people like Fed Chairman Ben Bernanke who believe that "increased regulation" of financial firms will solve future problems. MF Global was a supposedly a "highly regulated" entity. Its regulators are the CFTC and the supposedly "self-regulating" futures exchange CME Group, Inc. (CME).But where was the CFTC and/or the CME when MF Global customer money was being either stolen or converted to other uses by company executives? According to a publication of CME Group, Inc., titled "Financial Safeguards".
Clearing members must calculate segregation and secured requirements and ensure compliance with capital requirements on a daily basis.
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