CFTC accuses MF Global over fund transfers | FT Alphaville

CFTC accuses MF Global over fund transfers

CME Group, the US exchange operator and supervisor of MF Global’s futures brokerage business, has accused the failed broker-dealer of moving customer funds “in a manner that may have been designed to avoid detection”, the FT reports. MF Global left a $633m shortfall in what are supposed to be protected customer funds, the Commodity Futures Trading Commission said on Wednesday. The disclosure came as lawyers for MF Global’s bankruptcy trustee raced to arrange the transfer of thousands of commodities accounts before the law requires their liquidation. The Federal Bureau of Investigation is also looking at the matter, according to people familiar with the situation. The company declined to comment. Martin Glenn, bankruptcy judge, approved a plan to transfer wholesale at least 50,000 customer accounts linked to CME to other US futures brokers. James Kobak, a lawyer for the bankruptcy trustee, said that without the plan, accounts would “need to be liquidated in a matter of hours or days”. It was still unclear why the money was unaccounted for.