MF Global customers may soon collect money they lost in the brokerage's 2011 collapse, a judge ruled Tuesday.
In an agreement between CME and James W. Giddens, Trustee for the Securities Investor Protection Act liquidation of MF Global Inc., CME will be allowed to assert a $29 million claim against MF Global, a CME statement said. CME's claim was reserved under the prior settlement agreement between CME and the Trustee that allowed the return of over $161 million to the Trustee.
CME Group previously deferred its right to payment of any of its claims against MF Global until all customer account balance claims have been paid in full, and that continues to be the case, CME said.
In a separate agreement between CME and the Customer Representatives, CME has agreed to deliver $14.5 million, one-half of the distribution that it will receive from the Trustee, to the Customer Representatives for distribution to MF Global's former customers.
CME Group Executive Chairman Terry Duffy said the agreements provide a quicker resolution for CME customers, "giving them more money back sooner, rather than working through prolonged litigation."
Duffy added that the announcement is complimentary to other efforts CME undertook to return funds, including creation of a $100 million Family Farmer and Rancher Protection Fund.
Co-lead counsel Andrew Entwistle and Merrill Davidoff, acting on behalf of the customers, said the settlement also allows them to turn attention to MF Global's former officers and directors and the company's former auditor PwC.
"It is time for those defendants to pay for their improper behavior," they said.