CME Group: MF Global Now $633M Short, But Late Oct. Audit Had Firm in Compliance

CME Group Inc. said in a statement Nov. 2 that an audit it conducted of bankrupt futures commission merchant MF Global’s books and records during the week ending Oct. 28 “indicated that MF Global was in compliance with its segregation requirements.”

However, according to correspondence that day between Commodity Futures Trading Commission staff and the exchange, MF Global was approximately $633 million short in its customer segregated funds account just four days later, on Nov. 1.

In an initial letter to the CFTC Nov. 2 that was not made public, CME Group detailed its plans for transferring certain MF Global ...