CME Group May Move Customer Funds To Clearinghouses

Law360, New York (July 23, 2012, 8:06 PM EDT) -- The world’s largest futures exchange on Monday said it was considering the use of clearinghouses to hold its customer funds, saying the infamous collapses of MF Global Inc. and Peregrine Financial Corp. require the derivatives industry to bolster safeguards to prevent corporate malfeasance.

In a letter to customers, CME Group Inc. Executive Chairman Terry Duffy and Chief Executive Officer Phupinder Gill said they were “appalled” by the recent failures of MF Global and Peregrine and called for the industry to take greater lengths to protect customer...
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