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CME creates $100 million fund to protect farmers

The Chicago futures exchanges, working to repair market confidence after the MF Global collapse, Thursday announced a $100 million fund to protect agricultural customers from future problems at brokerages.

The money is available to U.S. family farmers and ranchers, groups that have been particularly harmed by MF Global. The fund is expected to start March 1, but no money will be available to MF Global victims.

CME Group Inc., owner of the Chicago Mercantile Exchange and the Chicago Board of Trade, called the fund an added security measure to protect food producers who need to hedge the value of their crops.

The MF Global bankruptcy on Oct. 31 and disclosure of an estimated $1.2 billion in missing customer money froze customers out of their accounts for weeks. Many since have had most of their funds restored, while others are waiting.

But a lack of access to the cash has disrupted the lives of traders and businesses. Some have accused CME of exercising poor oversight over MF Global, one of its biggest customers.

CME, however, has said it was victimized by MF Global too.

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  • http://www.newsandopinions.net Bill Stanley

    Sears Holdings and CME Group are the latest in a series of Illinois firms to threaten departure after the state temporarily raised corporate taxes earlier this year.

  • JERRYMATT

    100 million?!!!!!!!!!!! THAT’S A TOKEN!!!!!!THE BASTARDS HAVE TO MAKE ALL MF GOLOBAL AGRUCLTURAL CLIENTS WHOLE!!!!!! THE CME ARE CROOKS IN BED WITH JPMORGAN, GOLDMAN, …THE CFTC AND SEC AND DOJ ALL GANGERSTERS UNDER THE FEDERAL RESERVE SYSTEM UNBRELLA!!! CORZINE NEEDS TO BE MADOFFS ROOMNATE, ONLY RON PAUL WILL CORRECT THIS PROBLEM …WAKE UP AMERICA ….WERE LOSING!!

  • THOMAS STEWART

    Could CME Be “Chicago Muslim Empire” Using “King Obamas” Stimulas Money?? Yikeess, However This Operation Has That “Bad Chi-Town Smell” That Comes From Anything That “King Obama” Touches. God Bless America And Sheriff Joe Arpaio.

    • JERRYMATT

      CME LOVE IT !!!