Trying To Handle A PR Nightmare

StreetInsider:

CME Group today announced that it will establish a $100 million fund designed to provide further protection of customer segregated funds for U.S. family farmers and ranchers who hedge their business in CME Group futures markets.  In light of the recent MF Global failure, in which a clearing firm violated CFTC regulations and misused customer monies that should have been kept segregated, CME Group is adding this extra security measure to protect the country's food producers who are using CME Group futures markets to hedge their crops and livestock that feed the world. 

Under the Family Farmer and Rancher Protection Fund, expected to be in effect by March 1, 2012, farmers and ranchers using CME Group products will be eligible for up to $25,000 per account in the case of losses resulting from the future insolvency of a clearing member or other market participant.  Farming and ranching cooperatives also will be eligible for up to $100,000 per cooperative. If losses in a future failure total more than $100 million, participants will be eligible for a pro-rata share of the fund, up to $100 million.  This new fund is expected to be backed by an insurance policy and will not be available retroactively. 

"Many have been hurt by MF Global's bankruptcy," said CME Group Executive Chairman Terry Duffy.  "Though all the facts are not yet in, we do know our industry needs to focus on enhancing protections for customer segregated monies held at the firm level. 

Wow.  Somebody finally realized they have to do a better job of public relations.  What about stealing from client accounts didn't these guys understand until now?  Idiots.