Since MF Global went belly up on Oct. 31, the news dribbling out has covered everything from a missing $1.2 billion to who knew what was happening, and when, at the firm. Late last week another development has hit as news came down from Bloomberg, and other wire services, that the U.S. Commodities Futures Trading Commission is reviewing the actions of CME Group. The sticking point appears to be an audit CME conducted prior to the collapse of the New York-based broker, when that $1.2 billion went missing.
Bloomberg's story is based on a source that requested anonymity and a CME Group spokesperson says the organization has not been notified it is under investigation. The spokesperson did tell the news agency that CME welcomes an investigation, noting that it is part of CFTC's job to investigate MF Global and everything that has been happened.
The CME audit reported $200 million in excess funds on Oct. 28, with no indication that any money had gone missing. MF Global went bankrupt three days later. The report says CFTC has ordered CME to conduct a number of limited reviews of other futures brokers to ensure segregated accounts are properly managed.
CFTC could also have reached another roadblock in its investigation of the MF Global debacle as Louis Freeh, the MF Global bankruptcy trustee and former head of the Federal Bureau of Investigation has refused to provide some documents that might aid in the effort to find that missing $1.2 billion in customer funds.