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.