The CCC is also spearheading an effort to communicate its mission for the return of 100% of segregated customer assets in the MF Global bankruptcy to the various regulators with jurisdiction in the case.
US Commodity Futures Trading Commission (CFTC.gov)
It is the CCC's position that the CFTC abdicated its responsibility to SIPC in the early stages of the bankruptcy, which has led to confusion and ultimately the notion that losses in segregated funds can be subordinated to creditors of an estate in bankruptcy. We are urging our members and their clients and associates to communicate our desire that the CFTC steps up to its responsibility and protects commodity customer assets.
Please consider downloading the following letter, editing it with your personal information and sending it via email, fax or US mail to the addresses below. Please update the highlighted regions:
Commodity Futures Trading Commission
ATTN Chairman Bart Chilton, Commissioner Jill Sommers & Director Stephen Obie
1144 21st Street, NW
Washington, DC 20581
Chicago Mercantile Exchange (CMEGroup.com)
The CME was MF Global's Designated Self-Regulatory Organization (DSRO) and as such had a responsibility to ensure MF Global was properly segregating its customer assets. Moreover, it is the CCC's position that the CME should have stepped in to facilitate the transfer of customer accounts to another FCM regardless of the shortfall in funds. The CME could have made a guarantee for the shortfall, similar to their recent guarantee to the Trustee to facilitate distributions to customers, and pressed for a super-priority lien on the assets of the estate to recover it on behalf of clients. In doing so, the CME would have prevented an interruption in trading operations for tens of thousands of accounts, prevented the unnecessary exposure to unlimited market risk for some clients during the asset freeze and mitigated the damage to the industry's reputation.
The CME can still step in and offer their support on behalf of clients. Their chief competitor, the Intercontinental Exchange, did exactly that with a letter to the bankruptcy court supporting a motion to return 85% of customer funds at once. We urge our members and their clients and associates to communicate this desire to the CME.
At this time, we do not have a form letter available for use. One will be posted soon. Please consider contacting the CME with your own concerns as follows:
Charlie Carey- Vice Chairman
CME Group/Chicago HQ
Toll Free: 866-716-7274
Toll Free: 800-331-3332