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Bankrupt broker MF Global misused customers' money | Bankrupt broker MF Global misused customers' money |
(40 minutes later) | |
Bankrupt broker MF Global did not separate its customers' money from its own funds, according to its regulator. | Bankrupt broker MF Global did not separate its customers' money from its own funds, according to its regulator. |
By law, brokers have to keep their customers' money separate from other customers' money and from the company's own funds. | By law, brokers have to keep their customers' money separate from other customers' money and from the company's own funds. |
The statement came from the Commodity Futures Trading Commission and CME Group, which runs the Chicago Mercantile Exchange. | The statement came from the Commodity Futures Trading Commission and CME Group, which runs the Chicago Mercantile Exchange. |
MF Global filed for Chapter 11 bankruptcy protection on Monday. | MF Global filed for Chapter 11 bankruptcy protection on Monday. |
Chapter 11 postpones a US company's obligations to its creditors, giving it time to reorganise its debts or sell parts of the business. | |
"CME has determined MF Global is not in compliance with Commodity Futures Trading Commission and CME customer segregation requirements," CME chief executive Craig Donohue said. | |
The brokerage has 2,000 staff worldwide, including 600 in London. | |
It sought bankruptcy protection after revealing that it had a £4bn exposure to eurozone sovereign debt. |