Exchange operator CME Group Inc. (CME) has issued a $300 million
guarantee to help the trustee overseeing MF Global Holdings Ltd.
accounts, the CME's executive chairman told CNBC on Friday.
"Our guarantee is to help assist [the trustee] in the
transferring of secured collateral to [MF Global] clients," Terry
Duffy told the network. "This is something that we think is in the
best interest of the industry, and CME Group and its clients."
Fifty million dollars of the $300 million guarantee comes from
CME's trust, Duffy said.
CME regulates futures firms like MF Global. It regularly
reviewed MF Global's records, including making a full audit of the
firm in August, a CME representative told the Wall Street Journal,
according to a Thursday report.
"MF Global did not default to the CME clearinghouse. MF Global
had other issues," Duffy told CNBC, when asked about potential
changes in the auditing of futures firms. "All of our positions had
enough margin so they did not default to our clearinghouse."
MF Global filed for Chapter 9 bankruptcy on Oct. 31.
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