Welp, looks like the CME Group has made it clear that they aren't planning on paying a dime- fiat or otherwise.
I wonder how the farmers at the National Grain and Feed Association conference took that speech today. CME CEO Bryan Durkin better hope that those ranchers didn't bring their .223's after telling them that refunding their own money would be "unwise" and that the "CME bears a greater responsibility to its shareholders". LOL
CME Group Chief Operating Officer Bryan Durkin said on Monday the exchange will not guarantee the funds that remain missing from customer accounts at bankrupt brokerage MF Global after they are reimbursed by the bankruptcy trustee.
Such a move would be "unwise" and the CME has a "fiduciary responsibility" to its shareholders, he said at a National Grain and Feed Association conference on Monday.
A trustee overseeing the bankruptcy has said an increased payout to former clients should restore at least two thirds of U.S.-based property for the broker-dealer unit.
CME will not guarantee the remainder, Durkin said."We really feel we cannot expose ourselves to that level of responsibility or risk," Durkin told the NGFA Country Elevator Conference. "It's not covered as part of our rules. All of that being said we have taken some very unprecedented steps.
Durkin also said CME was still holding MF Global funds more than a month after the brokerage went bankrupt, adding that the money was "in the context of the remaining collateral that we had on deposit that has not been fully distributed."