CME Group: Current System Must Be Re-Evaluated
First Published Friday, 13th July 2012 11:47 pm - © 2012 Dow Jones
By Nathalie Tadena
Exchange operator CME Group Inc. (CME) said its current system of customer protection is inadequate after two major futures brokers failed in less than a year.
"Without question, the current system in which customer funds are held at the firm level must be reevaluated," the world's largest futures exchange operator by volume said in a statement.
CME said it is "appalled" by the recent violations of customer-segregated funds and said these breaches of trust are "completely unacceptable."
Brokerage Peregrine Financial Group collapsed this week as regulators alleged $215 million in client money had gone missing. The move dealt another black eye to the futures industry, which is still working to repair its reputation as $1.6 billion of MF Global Holdings (MFGLQ) client assets remain unreturned.
CME shares closed at $263.16 Friday and were unchanged after hours. The stock is off 6.7% over the past three months.
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