CME Group unveiled the first, targeted step toward rebuilding confidence in futures markets following the failure of MF Global.
CME Group announced that it would make a 100-million dollar Family Farmer and Rancher Protection Fund available to provide an additional layer of protection to farmers and ranchers who lose money due to any future failure of a clearing member firm.
CME Group Chief Operating Officer Bryan Durkin says they are creating this fund to make sure the nation’s food producers never again find themselves in the position they did in the weeks following the MF Global situation.
CME Group is working with several industry groups to provide recommendations that will be brought forward in the next several months to address further concerns. However - Durkin says this fund is something CME Group can do today to make sure additional protection is quickly in place for the agricultural community.
Durkin says the company plans to have more application details for the fund available before March 1st when the fund is expected to officially be in place. Also - industry recommendations for stronger protections of customer funds held at clearing firms are expected to be put forward this spring. For more MF Global updates - visit CME Group’s website at www dot cmegroup dot com (www.cmegroup.com).