Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

"Corzine rule" proposed for futures brokers

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/30/2012 | 01:20am CET

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Hundreds of millions of dollars in excess customer funds were withdrawn in the broker's final days, and CME Group - MF Global's frontline regulator, and the largest of several exchange operators that helped craft the new rules --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
0
Latest news on CME GROUP INC
12/07 CME GROUP INC. : Declares Annual Variable Dividend of $3.25 per Share
12/07 CME GROUP INC : ex-dividend day
12/06 CME : Crop futures rally drives large increase in producer sentiment
12/05 CME GROUP : Chief Financial Officer and Global Head of Financial and OTC Product..
12/05 CME : Reached Record Average Daily Volume of 20.9 Million Contracts per Day in N..
12/02 CME GROUP : Reached Record Average Daily Volume of 20.9 Million Contracts per Da..
12/02 CME : Rule breakers face bigger possible fines from CME Group
12/01 CME GROUP : Energy Complex Reaches All-Time Daily High of 4.5 Million Contracts
11/30 CME : Clearing Europe Approved as a Derivatives Clearing Organization by CFTC
11/29 CME : Chief Financial Officer and Global Head of Commodities and Options Product..
More news
Sector news : Financial & Commodity Market Operators - NEC
03:35aDJPostelection Rally Lifts Stocks to New Heights
12:16a INTERCONTINENTAL EXCHANGE : ICE told to speed up investigations on U.S. futures ..
12/06DJHeads of J.P. Morgan, Bank of America Say FICC Stronger
12/02DJNASDAQ : Judge Grills Futures Trader on 'Suckers' Email
12/02DJStocks Steady After Jobs Report
More sector news : Financial & Commodity Market Operators - NEC
News from SeekingAlpha
12/07 CME declares $3.25 dividend
12/07 UBS gets more bullish on exchanges
12/05 It Will Not Be Long Before The New Agricultural Commodity Trades On The Futur..
12/02 CME Group sees record volume in November
12/01 OPEC deal leads to big action for CME energy complex
Advertisement
Financials ($)
Sales 2016 3 528 M
EBIT 2016 2 252 M
Net income 2016 1 481 M
Debt 2016 -
Yield 2016 3,98%
P/E ratio 2016 27,52
P/E ratio 2017 25,86
Capi. / Sales 2016 11,6x
Capi. / Sales 2017 11,0x
Capitalization 41 010 M
More Financials
Chart CME GROUP INC
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
TrendsBearishBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 116 $
Spread / Average Target -3,8%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
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 INC33.39%41 010
INTERCONTINENTAL EXCHA..15.27%35 193
HONG KONG EXCHANGES AN..-2.02%30 561
INTERACTIVE BROKERS GR..-12.75%15 797
DEUTSCHE BOERSE AG-7.56%15 631
LONDON STOCK EXCHANGE ..-3.21%11 904
More Results