UPDATE: CME Executives Defend Actions After MF Global Collapse
24 Maggio 2012 - 2:38AM
Dow Jones News
Leaders of exchange operator CME Group Inc. (CME) said on
Wednesday that they acted properly and in accordance with
bankruptcy laws following the collapse of brokerage firm MF Global
(MFGLQ).
"All of the information has yet to come out," said CME Executive
Chairman Terry Duffy, responding to questions at CME's annual
shareholder meeting. MF Global customers are said to be missing
some $1.6 billion that couldn't be accounted for as the brokerage
collapsed.
A review by an outside firm of CME's actions "came out fine,"
said the company's new chief executive, Phupinder Gill, who took
over for the retiring Craig Donohue on May 1.
Nothing more could have been done to speed up the process or
make it go more smoothly, said Gill. He said CME's hands were tied
by bankruptcy laws.
Duffy told shareholders he saw staffers work "around the clock"
to place clients with new clearing firms.
Duffy said CME's clearing house did its job during the crisis,
even though MF Global was considered a "firm of good standing"
leading up to its bankruptcy.
Earlier, several shareholders halted the proceedings for about
15 minutes, demanding CME return tax breaks it is receiving from
the state government as an incentive to keep its headquarters in
Illinois. They shouted, "Pay your fair share," as security
personnel escorted them out of the room. Outside the building,
about 100 protesters assembled, yelling "We are the 99%."
CME threatened to leave the state last year when lawmakers
boosted the corporate tax rate to 7% from 4.8%. By year's end, CME
and the state signed off on a deal to tax the exchange on 27.54% of
all electronic trades, down from 100%. Census data supported CME's
claim that most of the electronic transactions don't originate in
Illinois.
"I think the state cut a very good deal for itself," said Duffy
who met with reporters after the shareholders' meeting.
CME is the top corporate taxpayer in Illinois, but will rank
17th when the tax deal is fully implemented, said Duffy.
-By Howard Packowitz, Dow Jones Newswires; (312) 750-4132;
howard.packowitz@dowjones.com
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