Customers of MF Global will be reimbursed. Following an order from the CFTC, collapsed brokerage firm MF Global has begun to reimburse the US$1.2 billion of customer funds lost when the company went bankrupt in 2011. The payouts are expected to be sent out by the end of the week. The CFTC consent order also imposed a US$100 million civil monetary penalty against MF Global, which will be paid after its customers and creditors have been fully reimbursed. (4/3/2014) CFTC news release.
CFTC’s Dodd-Frank power would be limited by House bill. The House Agriculture Committee introduced a bill during the week of April 7th that would require the CFTC to probe the costs of enforcing its Dodd-Frank Act regulations and conduct an up-to-date study of the current state of high-speed trading. The legislation would also impose limits on the CFTC’s power to enforce rules on overseas derivatives trading and on manufacturers using swaps to hedge business risks. (4/9/2014) Bill.
Senate panel approves Massad to head CFTC. US Senate panel approved Timothy Massad as the Commission’s next chairman this week. Massad is a lawyer who helped oversee the Treasury Department’s bank bailout program in 2008 and 2009. (4/8/2014) Massad.