CME Group Family Farmer and Rancher Protection Fund

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Following the bankruptcy of MF Global in October of 2011, the CME Group in April 2012 established a $100 million Family Farmer and Rancher Protection fund to provide further protection of customer segregated funds for U.S. family farmers and ranchers who use CME Group markets.[1][2][3]

Farmers and ranchers enrolled in the program will be eligible for up to $25,000 per participant in the case of losses resulting from the future insolvency of a clearing member or other market participant. Also, farming and ranching cooperatives are eligible for up to $100,000 per cooperative.

If loses in a future failure exceed $100 million, program participants would be eligible for a pro-rata share of the fund, up to $100 million.

Clearing members and eligible family farmers, ranchers and agricultural cooperatives must register in advance with CME Group and provide certain documentation in order to substantiate their eligibility.

Resources

References

  1. Family Farmer and Rancher Protection Fund. CME Group.
  2. CME Group Family Farmer and Rancher Protection Fund Update. The NIBA.
  3. CME to back farmers/ranchers. Futures Magazine.

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