Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nasdaq  >  CME Group Inc    CME

Delayed Quote. Delayed  - 09/27 05:20:19 pm
105.59 USD   +0.30%
05:23p Baltic Exchange succumbs to Singapore as shipping turmoil deepens
04:01p CME GROUP : to Transition Dairy Spot Call to CME Direct Auction Plat..
09/23 CME : Named 'Exchange of the Year' by GlobalCapital
News SummaryMost relevantAll newsSector news 

CFTC's Sommers says no conclusions yet on MF Global

share with twitter share with LinkedIn share with facebook
share via e-mail
04/24/2012 | 04:11pm CEST

The futures regulator has the power to go after top executives who "aid and abet" violations by their companies, said Jill Sommers, who is heading up the Commodity Futures Trading Commission's probe into bankrupt brokerage MF Global.

Sommers, a Republican CFTC commissioner, was careful to say in congressional testimony prepared for delivery on Tuesday that her comments did not mean the CFTC had reached any conclusions as it probes why more than an estimated $1 billion dollars of customer money is missing.

But she laid out potential enforcement action scenarios for the CFTC to pursue.

"Staff is speaking with witnesses and reviewing documents and other information," said Sommers. "They are proceeding as expeditiously as they can."

She will testify before the Senate Banking Committee along with CME Group Inc Chairman Terrence Duffy, securities regulators, and bankruptcy trustees for the broker-dealer and the parent company.

Congressional investigators and enforcement authorities are probing how much top-level and second-tier executives knew about potentially improper money transfers as MF Global suffered a liquidity crisis more than five months ago.

Former MF Global Chief Executive Officer Jon Corzine has told lawmakers he "never intended" to break any rules and did not give instructions to misuse customer funds.

Corzine, a former U.S. senator and a governor of New Jersey, did say, though, that others could have misinterpreted directions to "fix" a fund shortfall.

Last month Lawmakers released a report that cited an October 28 email from MF Global Assistant Treasurer Edith O'Brien discussing a $200 million transfer to cover an overdraft. That transfer, which may have included customer funds, was "Per JC's (Jon Corzine's) direct instructions," O'Brien's email was quoted as saying.

CFTC regulations require firms to protect customers' money by keeping it separate from their own proprietary funds.

MF Global filed for bankruptcy on October 31 after investors and customers became rattled over its $6.3 billion bet on European sovereign debt and its credit-rating downgrades.

MF Global scrambled in the final days to find a buyer, but the deal never came to fruition after the billion-dollar gap in customer funds was discovered at the 11th hour.

Neither MF Global nor its officials have been formally charged with wrongdoing.

In her testimony, Sommers said that, in general, a shortfall in customer money could amount to a violation of rules that govern segregated funds, that prevent the theft of customer money, that call for proper account supervision, that ban false statements, and those that prohibit deceptive schemes.

Actions could be brought against the companies or individuals who violated the law, she said, as well as "control persons," or people in a managerial role.

In addition, she said, the CFTC can also take action against accountants who audit futures brokerages or banks that hold customer money.

She did not name specific entities. CME Group was the designated self-regulator in charge of auditing MF Global's futures business, and JPMorgan has been the main custodial bank at the center of the MF Global controversy.

CME has maintained that MF Global lied to regulators and broke the rules governing segregated funds.

CME is facing a regulatory probe into whether it did enough to safeguard MF Global customers' money, sources have told Reuters.

Among the self-regulator's legal obligations is to verify whether daily segregation reports by a futures brokerage match up with bank statements.

On Tuesday, CME's Duffy plans to defend the current regulatory system in place, saying MF Global's "misconduct" should not be a reason to undermine it.

Meanwhile, James Giddens, the trustee for MF Global's brokerage arm, has been investigating JPMorgan's actions in connection with MF Global.

In prepared testimony, he said the bank had been cooperating and was "engaged in substantive discussion regarding the resolution of the claims."

He also said it "may be appropriate to impose civil fines in the event of a regulatory shortfall on the officers and directors who are responsible for signing the firm's financial statements."

(Reporting By Sarah N. Lynch; Additional reporting by Dave Clarke and Alexandra Alper; Editing by Lisa Von Ahn)

By Sarah N. Lynch

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on CME GROUP INC
05:23p Baltic Exchange succumbs to Singapore as shipping turmoil deepens
04:01p CME GROUP : to Transition Dairy Spot Call to CME Direct Auction Platform
09/23 CME : Named 'Exchange of the Year' by GlobalCapital
09/21 CME GROUP : Named "Exchange of the Year" by GlobalCapital
09/21DJStocks Rally on Hopes for Growth
09/16 CME GROUP INC. : Announces Third-Quarter 2016 Earnings Release, Conference Call
09/16 CME : Announces First Trades of New EU Wheat Futures Contract
09/15 CME : Chief Financial Officer to Present at UBS Best of Americas Conference 2016
09/15 CME GROUP : Announces Launch of First-Ever Precious Metals Spread and Ratio Futu..
09/13 CME GROUP INC. : Announces Third-Quarter 2016 Earnings Release, Conference Call
More news
Sector news : Financial & Commodity Market Operators - NEC
05:23p Baltic Exchange succumbs to Singapore as shipping turmoil deepens
04:10p LONDON STOCK EXCHANGE : Deutsche Boerse Asia plans sidelined by LSE merger effor..
09/26 CBOE to buy BATS for $3.2 billion in latest exchange deal
09/23DJMARKETAXESS : Electronifie Considers Options Including Sale
09/23 LONDON STOCK EXCHANGE : Swiss, German share trade settlement houses team up to c..
More sector news : Financial & Commodity Market Operators - NEC
News from SeekingAlpha
09/21 BANK DERIVATIVES DEALING : The Big Banks Cry Wolf
09/07 THE CHICAGO STOCK EXCHANGE : A Different Speed Bump Changes Everything
09/02 CME Group August volume slips from a year ago
08/31 CME Group gets price target boost
Financials ($)
Sales 2016 3 558 M
EBIT 2016 2 294 M
Net income 2016 1 457 M
Debt 2016 -
Yield 2016 4,50%
P/E ratio 2016 24,92
P/E ratio 2017 22,51
Capi. / Sales 2016 10,0x
Capi. / Sales 2017 9,51x
Capitalization 35 671 M
More Financials
Duration : Period :
CME Group Inc Technical Analysis Chart | CME | US12572Q1058 | 4-Traders
Full-screen chart
Technical analysis trends CME GROUP INC
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 109 $
Spread / Average Target 3,8%
Consensus details
EPS Revisions
More Estimates Revisions
Phupinder S. Gill Chief Executive Officer & Director
Terrence A. Duffy Executive Chairman & President
Julie Holzrichter Chief Operating Officer
John W. Pietrowicz Chief Financial Officer
Kevin D. Kometer Chief Information Officer & Senior MD
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CME GROUP INC16.19%35 671
More Results