Reuters: Bankruptcy News: CME reopens claims process for MF Global customers

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CME reopens claims process for MF Global customers Sep 10th 2012, 21:23 By Tom Polansek CHICAGO, Sept 10 | Mon Sep 10, 2012 5:23pm EDT CHICAGO, Sept 10 (Reuters) - CME Group customers and members who were clients of MF Global are getting another chance to file claims against property of the bankrupt brokerage that was held by the exchange operator. CME, the largest U.S. exchange operator, said in a notice distributed on its Chicago trading floor on Monday that it decided to reopen the claims process "to ensure that all members have an opportunity to file any claims that they may have." MF Global collapsed last fall and customer accounts were frozen after former Chief Executive Jon Corzine's $6.3 billion bet on European sovereign debt worried investors, counterparties and credit rating agencies. CME, which was MF Global's first-line regulator, previously had a Jan. 31 deadline for claims related to MF Global. The brokerage was one of CME's largest customers. The move to reopen the claims process was sparked by a bankruptcy court's ruling last month that allowed the trustee liquidating MF Global's brokerage unit to recover nearly $160 million from CME. CME held MF Global property, including cash in MF Global's own trading account and seats at CME exchanges. The court's ruling allowed CME to retain $16.5 million to cover various claims related to the bankruptcy, which can include rebates for brokerage fees paid by CME customers and members who were MF Global clients, a CME spokeswoman said. CME will return leftover money to the trustee if claims fall short of $16.5 million and pro-rate payments if they exceed $16.5 million, she said. CME warned it may take six months or longer before any distributions are made. The new deadline for filing is Oct. 5. Claims for account balances or for the loss of segregated funds in customer accounts will not be administered under the reopened process. The trustee has said he has distributed or is distributing 80 percent of what commodity customers were owed with respect to their segregated accounts, but that a $1.6 billion shortfall remains. Link this Share this Digg this Email Reprints

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