WTF......CME has their own trading machine
reuters.com
CME Group gets in line with $16 mln MF Global claim
By Ann Saphir
CHICAGO | Tue Feb 28, 2012 3:40pm EST
CHICAGO Feb 28 (Reuters) - CMG Group Inc has joined the line of former MF Global Inc customers trying to get their money back from the bankrupt brokerage giant once run by former Goldman Sachs executive Jon Corzine.
That MF Global was among CME's biggest customers is widely known. That CME was also an MF Global customer is not.
But on Tuesday, the Chicago-based exchange operator disclosed that a wholly-owned unit, GFX Corporation, had lodged a $15 million letter of credit as collateral with MF Global before the brokerage's demise, and the letter is now held by the MF Global bankruptcy trustee.
CME's GFX unit in December filed a $16 million customer claim in the MF Global Inc bankruptcy case, trustee records show, including the letter of credit and about $1 million in cash.
CME's GFX unit is a little-known proprietary trading group within the futures exchange operator that buys and sells futures, mostly tied to currency, to boost liquidity in CME's electronic markets.
Until Oct. 31, GFX cleared trades through MF Global, and had posted the letter of credit with the brokerage to back those trades. The MF Global claim form shows GFX had positions in the Japanese yen, the British pound, and the Swiss franc at the time of MF Global's collapse.
GFX now clears through another brokerage, CME said in its filing on Tuesday, without naming it.
The letter of credit expires on June 29 and can still be drawn on by the trustee to pay for any customer claims, CME said in the filing.
About $1.6 billion of former MF Global customer money is missing, the bankruptcy trustee has said. If the funds are not recovered, former customers, including CME, may have to share in losse |
