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

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

News SummaryMost relevantAll newsSector newsTweets 

"Corzine rule" proposed for futures brokers

share with twitter share with LinkedIn share with facebook
share via e-mail
05/30/2012 | 01:20am CEST

Futures brokers would need to get approval from a top executive before making big withdrawals from customer accounts under a rule now pending and referred to in the industry as the "Corzine rule", after MF Global's former CEO Jon Corzine.

The proposal is one of several planned changes to futures industry practices prompted by MF Global's collapse last October and the disappearance of funds from customer accounts.

The National Futures Association's board has approved the proposed rule along with several others, and submitted them to the Commodity Futures Trading Commission for approval, the NFA said on Tuesday.

Exchanges and regulators had boasted for decades that rules requiring brokers not to use customer funds for their own purposes meant those customer funds were safe.

After MF Global went bankrupt, some $1.6 billion of customer money went missing, and more than six months later has still to be accounted for.

Hundreds of millions of dollars in excess customer funds were withdrawn in the broker's final days, and CME Group - MF Global's frontline regulator, and the largest of several exchange operators that helped craft the new rules -- has said that much of the money was improperly transferred from customer accounts to MF Global's own accounts.

Corzine has testified he never told anyone to take customer funds to cover the broker's own bills. He has not been accused of wrongdoing.

Under the proposed Corzine rule, futures brokers would need to get written approval from the chief executive, the chief financial officer or another designated officer for the withdrawal of more than 25 percent of a customer's excess funds.

Excess customer funds are funds held by the broker above and beyond what is needed to back a customer's trades.

Under existing industry rules there is no limitation on the amount a broker could move from a customer's excess funds.

The proposed rules also require brokerage firms to maintain written policies about how they guard against using customer money for their own purposes.

"These new requirements will help begin the process of restoring public confidence in the financial integrity of customer segregated funds," NFA chief Dan Roth said in a statement.

New rules will also require futures brokers to provide more financial and operational information to NFA, some of which NFA will publish on its website.

(Reporting by Ann Saphir; editing by Carol Bishopric)

Stocks treated in this article : CME Group Inc., MF Global Holdings Ltd
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on CME GROUP INC
04:33p CME GROUP INC. : Reports Strong First Quarter 2017 Financial Results
04/27 CME : revenue misses on lower demand for market data services
04/27 CME GROUP INC (NASDAQ : CME) reported earnings of $1.22 per share beating Walls ..
04/27 CME GROUP INC. (NASDAQ : CME) Files An 8-K Results of Operations and Financial C..
04/27 CME GROUP INC. : Results of Operations and Financial Condition, Financial Statem..
04/27 CME GROUP INC. : Reports Strong First-Quarter 2017 Financial Results
04/21 Chamberlain chosen as LME chief with mandate to reform
04/19 CME : The Shelter Mutual Insurance Co Maintains Position in Cme Group Inc
04/12DJCME : U.S. Futures Giant CME Group Pulls Back From Europe
04/12 CME : Russell 2000® Index Futures and Options to Return to CME Group July 10
More news
Sector news : Financial & Commodity Market Operators - NEC
04/27 DEUTSCHE BOERSE : eyes takeovers outside core exchange business
04/27 Deutsche Boerse ups profit, to buy back shares after failed LSE deal
04/26DJDEUTSCHE BOERSE : Reports Higher 1Q Profit, Announces Share Buyback
04/26DJDEUTSCHE BOERSE : Executive Board Plans Implementation Of Share Buyback Program ..
04/26 DEUTSCHE BOERSE : European Energy Exchange to expand trading as earnings surge
More sector news : Financial & Commodity Market Operators - NEC
News from SeekingAlpha
04/27 The Newest ETF May Be The Best Yet
04/27 CME Group (CME) Q1 2017 Results - Earnings Call Transcript
04/27 CME beats by $0.02, misses on revenue
04/26 Notable earnings before Thursday?s open
04/17 The LIBOR Scandal Moves Up The Power Ladder
Financials ($)
Sales 2017 3 758 M
EBIT 2017 2 504 M
Net income 2017 1 631 M
Debt 2017 604 M
Yield 2017 5,06%
P/E ratio 2017 24,35
P/E ratio 2018 21,94
EV / Sales 2017 10,6x
EV / Sales 2018 9,97x
Capitalization 39 117 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 15
Average target price 129 $
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Terrence A. Duffy Executive Chairman & Chief Executive Officer
Bryan T. Durkin 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 INC-0.20%39 117
More Results