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CME, MF Global trustee reach deal to release $130 mln

Published: 19:22 14 Jun 2012 BST

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Futures market operator CME Group Inc. (NYSE:CME) and the trustee unwinding brokerage firm MF Global Thursday struck a deal that will see $130 million go to former customers of the collapsed firm.

Under terms of the agreement struck Thursday, CME's own claims will have a lower priority of payment than MF Global's former customers.

MF Global's rapid implosion in late October 2011 left holes in the accounts of the fund managers, farmers and traders that depended on the firm to do business in financial markets.

The CME, which drew criticism from MF Global clients over its early handling of the firm's failure, offered a financial guarantee that enabled the trustee to free up the majority of customer cash and other property held by MF Global when it failed.

The $130 million will be split between U.S.-based and overseas accounts, according to a notice from trustee James Giddens.

An additional $16.5 million in property will continue to be held by CME to cover any claims against the exchange group and $28.5 million more will go to the judge overseeing the case to be allocated later.

Thursday's agreement does not yet alter Gidden's estimate of $1.6 billion in customer funds held by MF Global that have yet to be returned to customers.

That figure depends on total claims and recovery efforts, according to the trustee's spokesman.

"This agreement supports my goal to expeditiously resolves outstanding conflicts with parties as we work to recover and distribute as much customer property as possible as quickly as possible, in a manner that is fair and consistent with the law," Giddens said in a statement.

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