CME agrees to turn over MF Global property
By Aruna Viswanatha and Nick Brown
WASHINGTON (Reuters) - CME Group Inc CME.O reached an agreement to return $175 million in MF Global Holdings Ltd MFGLQ.PK property, a trustee in the bankruptcy of the failed brokerage said on Thursday, $130 million of which is earmarked for former customers of the firm.
The settlement helps push the trustee closer to making whole customers who lost an estimated $1.6 billion after the company improperly mixed client funds with its own money. MF Global filed for bankruptcy last October.
MF Global customers who traded on U.S. exchanges have to date received roughly 72 percent of their claims.
The accord must be reviewed by the bankruptcy court and will not be implemented until it receives approval, trustee James Giddens said in a statement.
CME expected the agreement to speed up the process of returning money to customers.
"We look forward to the court's approval of this plan," CME spokeswoman Laurie Bischel said.
The $130 million will be split between commodity customers trading on domestic and foreign exchanges, Giddens said.
Some $16.5 million will remain with CME to deal with MF Global-related claims against it and the rest of the money will go into a general fund, a spokesman for Giddens said. Continued...