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Desperate CME Tries To Regain Client Confidence In MFG, PFG Aftermath; Sends Letters To Customers

Tyler Durden's picture


The CME, which is seeing an unprecedented exodus in trading and customers due to the recent fiascoes at MF Global and Peregrine Financial, and which is completely helpless to do anything about what is fundamentally a core feature of modern US 'capital markets', has resorted to the last ditch effort of every failing enterprise: writing and mailing letters to clients full of hollow promises. "We want you to know that CME Group is committed to making whatever changes are necessary to strengthen customer protections, restore confidence in the futures industry and ensure the effectiveness of these critical markets." Or until the next MFG or PFG at least. Sorry: too little, too late.

From the CME

July 23, 2012

To our customers:

CME Group is appalled by the recent misuse of segregated funds by two firms, MF Global Inc. and PFG, particularly since there has never been anything like it in the history of the futures industry.

Clearly there were serious management transgressions at each firm. But while these firms may have been at fault, it's nevertheless our problem as an industry, and this problem needs a solution. Not protecting customer funds is such a fundamental breach of trust that, without question, the current system in which customer funds are held at the firm level must be re-evaluated. We are exploring the concept of having clearing houses or other depositories hold all customer segregated funds while returning any interest earned on that money back to the FCMs, increasing protections while preserving the operating model for the vast majority of firms who respect and comply by the rules.

The futures community has a strong history of working together to improve our industry. Congress, federal regulators, industry regulators, industry groups and CME are all working towards the same goal: to ensure that market users have confidence in all aspects of the industry, and that the appropriate protections are in place at every point in the system. Every link in the chain has to be as strong as the next. The businesses and individuals who rely on the futures markets to manage their risk rely on all of us to collectively manage their trust.

For CME Group, nothing is more important than the confidence customers have in our marketplace and the protection of our customers when using our markets. In conjunction with the NFA, CFTC and others, we have put in place and are in the process of implementing a number of new requirements designed to deter another firm from misusing customer funds. New requirements include:

  •     Increased surprise reviews of customer segregated funds
  •     Daily segregation reporting by all FCMs
  •     Bi-monthly reporting on investment of segregated funds
  •     Periodic electronic confirmation of customer segregation balances from the firms via e-confirm system
  •     New rules providing direct online access to firm bank accounts to confirm segregation balances
  •     CEO/CFO signoffs of customer segregated fund distributions (Corzine rule)

While these significant steps will provide further safeguards to the users of our markets, and continue to make the system even stronger. We want you to know that CME Group is committed to making whatever changes are necessary to strengthen customer protections, restore confidence in the futures industry and ensure the effectiveness of these critical markets.


Terrence A. Duffy
Executive Chairman & President

Phupinder Gill
Chief Executive Officer


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Mon, 07/23/2012 - 14:10 | 2643264 Meesohaawnee
Meesohaawnee's picture

another hour and the end of the day ramp job.. get ready. algos getting warmed ..vroom vroom

Mon, 07/23/2012 - 14:23 | 2643324 dow2000
dow2000's picture

Actually, given the long slow ramp all day...I'd bet  we sell off aggressively into the close.  TPTB need to sell off from abetter position, gaps down on the open catch alot of the Hampton's crowd by surprise on a Monday morning!

Mon, 07/23/2012 - 14:35 | 2643352 idea_hamster
idea_hamster's picture

  "the recent misuse of segregated funds"

Total fail within the first 10 words -- PFG admitted it was skrewing clients for 20+ years.

Clearly CME is actually appalled that people got caught:  

"To be with another man's wife? That's French. To get caught? That's American."

Mon, 07/23/2012 - 14:47 | 2643395 Jonas Parker
Jonas Parker's picture

Looks like Ann Barnhardt's call was right on the money (no pun intended).

Mon, 07/23/2012 - 14:51 | 2643406 NotApplicable
NotApplicable's picture

Must be a special week, with Friday afternoon humor showing up on Monday.

I'd like to say I'm surprised that these geniuses didn't see their susceptibility to being Corzined, but no, they went full-retard.

Or maybe they did realize it at the time, but kept quiet, not wanting to get on Dimon's death threat list?

So... which mafia runs the CME, anyway?

Mon, 07/23/2012 - 15:05 | 2643439 Gief Gold Plox
Gief Gold Plox's picture

Jesus. Are they trying to go out of business? Anyone reading this letter having two brain cells to rub together will read it as a giant "Get the fuck out of Dodge" poster which it is.

Anyways, Dear CME, it's been nice knowing you. NOT!

Mon, 07/23/2012 - 15:49 | 2643563 CH1
CH1's picture

The place was dirty as hell in the 70s. God only knows what it's like now.

"Cleaned up" my ass.

Mon, 07/23/2012 - 16:05 | 2643603 Doña K
Doña K's picture

Dear Mr. Duffy,

I am sure by now you are aware of this article and may be reading comments here. These comments below and more to come, are representative of the people who invest. They also read zerohedge.

While reading, besides finding the truth and the feelings of the investing world you now know what needs to be done.

I am sure that you have a high IQ and you know what the right thing to do is.

If you have any concience, resign and write a similar letter that the IMF fellow did. The other option is to raise hell and demand justice and the third option is to stay a coward and rot in hell.

Mon, 07/23/2012 - 16:36 | 2643668 TrainWreck1
TrainWreck1's picture

The only thing Duffy and Phoophighter are doing is pulling everything personal out before the whole mess collapses.

These guys will walk away with a ton, scot-free, and the investors will be *surprise... wait for it* holding the bag.


Mon, 07/23/2012 - 19:08 | 2644016 Bananamerican
Bananamerican's picture

" Congress, federal regulators, industry regulators, industry groups and CME are all working towards the same goal:"


"Personal enrichment and the ensuing, semi-inadvertant destruction of Amerikan capital markets"

Mon, 07/23/2012 - 20:00 | 2644135 FEDbuster
FEDbuster's picture

Restored CONfidence?  When Jon Corzine and Bernie Maddoff are bunking in the same prison cell.

Mon, 07/23/2012 - 21:51 | 2644365 TheFourthStooge-ing
TheFourthStooge-ing's picture

TrainWreck1 said:

The only thing Duffy and Phoophighter are doing is pulling everything personal out before the whole mess collapses.

To our customers:

Please don't pull your money out yet. If you wait until after Halloween, we'll send you a free Spiderman beach towel. Thanks.

Duffy and Phoo Phighter

Tue, 07/24/2012 - 12:44 | 2645912 J U D G E M E N T
J U D G E M E N T's picture

The proper way forward is to admit responsibility for the transgressions of your

regulated firms, make the customers whole, and move forward with REAL oversight

and regulation that is ALREADY supposed to be done.


As long as you are THINKING about making changes, which we don,t need, Ill be

thinking the CME is a criminal organization colluding with its associated firms to

steal peoples money for your own gain.


The CME is over if it does not. Period.



Mon, 07/23/2012 - 15:52 | 2643572 smlbizman
smlbizman's picture

its obvious gief you didnt read the letter......did you not see were they are "appalled", and the cme, congress, the fed regulators, industry regulators and i even bet jamie and lloyd are "appalled" just cant please you people.....and for that..i am "appallled"

Mon, 07/23/2012 - 16:38 | 2643673 tenpanhandle
tenpanhandle's picture

instead of being appalled, they should be impaled.

Mon, 07/23/2012 - 16:26 | 2643650 Whiner
Whiner's picture

Shoulda added a "P.S. For customers who stay in the CME Family, each has our unequivocal assurance that you accounts shall remain unfettered by rehypothication clauses. And, we're not done: you will be assured of a seat on the creditors committee in any Chapter 11 case filed by your dealer! Yours very truly, I remain TA "Dud" Dudley."

Mon, 07/23/2012 - 15:34 | 2643536 El Oregonian
El Oregonian's picture

"temporal illusions": Everything in the future has been manipulated in the past, which explains why everything is coming conveinently, to this point in time i.e. meltdown... It's weird but logical.

Wed, 07/25/2012 - 12:17 | 2649693 matrix2012
matrix2012's picture


El Oregonian,

interesting link but this particular page "DARPA Neuroscience Research And The Batman Massacre" is NO longer available!! any copy of its content?

Tue, 07/24/2012 - 00:33 | 2644618 torak
torak's picture

No one has ever lost a dime in the derivatives market under the watchful eye of CME...NOT!

I thought I read some CME propaganda before the debacle that CME would make the customers of any failing member whole again should the member fail.  Now, that would go a long way to restoring confidence.  But mere words on a press release?  Forget it.  Everyone knows the CME is run by lying SOS.

Mon, 07/23/2012 - 15:05 | 2643435 DoChenRollingBearing
DoChenRollingBearing's picture

@ Jonas + 1

Yes, Ann Barnhardt warned everyone to GET OUT some 11 days ago.  I would go with Ann's advice rather than this shabby letter from the CME.

Mon, 07/23/2012 - 15:33 | 2643525 The Big Ching-aso
The Big Ching-aso's picture




A fly on CME's executive restroom wall...............

"Hey Gary, what did you think of our letter?"

"Ughhhh, I think, (grunt), it's good, (grunt).  I'm glad you didn't mention me."

"Yeah Gare, well about that no mention.  Word's that you're up for promotion."

"No shit! (grunt).  I won't settle for anything less than Treas-Sec.  I earned it."



Mon, 07/23/2012 - 23:10 | 2644503 TheFourthStooge-ing
TheFourthStooge-ing's picture

The Big Ching-aso said:

A fly on CME's executive restroom wall...............

Another possibility:

Mon, 07/23/2012 - 15:52 | 2643571 zanez
zanez's picture

Barnhardt warned everyone to get out last year.


Mon, 07/23/2012 - 16:21 | 2643640 William Wics
William Wics's picture

I was thinking exactly the same thing.

Mon, 07/23/2012 - 18:42 | 2643980 killallthefiat
killallthefiat's picture

Excellent point. I had forgotten about her. 

Mon, 07/23/2012 - 15:10 | 2643459 Arnold Ziffel
Arnold Ziffel's picture

Do you know where your money is?

Mon, 07/23/2012 - 15:21 | 2643493 Widowmaker
Widowmaker's picture

I do, crisp bound $50 bundles of $2k each.

The problem is so many of them I cant sleep.


Mon, 07/23/2012 - 15:25 | 2643503 GMadScientist
GMadScientist's picture

I'd valuate that as "one swift headsmack away from poverty".


Mon, 07/23/2012 - 15:34 | 2643537 Widowmaker
Widowmaker's picture

But my accountant said it would be soft...

Mon, 07/23/2012 - 15:33 | 2643526 iDealMeat
iDealMeat's picture

Convert it into nickels..  99.99% of people would leave it alone and not realize its worth more then the sitting FRN's



Tue, 07/24/2012 - 00:39 | 2644635 Bringin It
Bringin It's picture

idea_hamster - if you begin your post with italics, no one can vote it up or down.  The italics kill off the voting [javascript?] script for some buggy reason.

Tue, 07/24/2012 - 11:59 | 2645672 Kobe Beef
Kobe Beef's picture

"CME Group is committed to making whatever changes are necessary..."

Like, customer dude, we'll promise whatever changes, cuz we haven't, you know, thought of any specific changes to make. And we don't plan on making any actual changes anyway. Like anyways, brah. Send us more money. Dimon needs a new yacht and the hoes are getting bitchy, for real.

Sincerely Up Yours,



Mon, 07/23/2012 - 14:32 | 2643354 strannick
strannick's picture

Die CME die. Your 'whoops I did it again', lucy-and-charlie-brown football antics are tiresome. We're all standing poolside watching you drown.

Mon, 07/23/2012 - 14:53 | 2643413 NotApplicable
NotApplicable's picture

Now not all of us would sit idly by.

I, for instance, would chuck in a brick or two.

Mon, 07/23/2012 - 15:08 | 2643449 unrulian
unrulian's picture

"trying to call 911....this stupid BlackBerry keyboard...or is it the network?....any one have an Iphone?"

Mon, 07/23/2012 - 14:25 | 2643331 Central Bankster
Central Bankster's picture

Im guessing RobotTrader is getting levered long CME as we speak?

Mon, 07/23/2012 - 14:28 | 2643343 The Big Ching-aso
The Big Ching-aso's picture



Fill in the blank...............

"I promise again not to come in your_______."


Mon, 07/23/2012 - 15:13 | 2643466 piceridu
piceridu's picture

your segregated mouth

Mon, 07/23/2012 - 15:25 | 2643507 GMadScientist
GMadScientist's picture

Can I buy two commas and some conjunctions please?

Mon, 07/23/2012 - 21:56 | 2644373 TheFourthStooge-ing
TheFourthStooge-ing's picture

Central Bankster said:

Im guessing RobotTrader is getting levered long CME as we speak?

That's his plan for recovering from the spanking he received on the Facebook IPO.

Mon, 07/23/2012 - 14:50 | 2643389 Carl Spackler
Carl Spackler's picture

Too little, too late...for customers of firm's with seats on the CME group of companies.

This is unprecented.  By the way, whatever happened to REFCO?

Mon, 07/23/2012 - 15:10 | 2643457 pavman
pavman's picture

whatever happened to REFCO?

They were allowed chapter 11 (instead of chapter 7) and thus allowed to reform.


Hmmm.... since 2006 (or whenever that happened) I've had 0 faith in CFTC, NFA, and retail FX market makers.  And apparently the SEC is a joke too, considering they let REFCO go public 3 months before they declared bankruptcy.   Makes you really wonder about that whole false sense of security the gubermint provides with organizations like this.  I do wonder who lobbied for CFTC and NFA in the first place.  One thing's for certain: the gubermint hasn't learned from REFCO.

Mon, 07/23/2012 - 15:53 | 2643577 CH1
CH1's picture

the SEC is a joke too, considering they let REFCO go public 3 months before they declared bankruptcy..

And they both examined and cleared Madoff TWICE, and... and... and...

Mon, 07/23/2012 - 14:53 | 2643414 cossack55
cossack55's picture

Whats a "Phupinder"?

Mon, 07/23/2012 - 15:29 | 2643520 Motorhead
Motorhead's picture

Exactly.  Does anyone expect us to believe ANYBODY with a name such as "Phupinder"?  Phooie-pinder is more like it.  What a fucking joke.

Mon, 07/23/2012 - 16:08 | 2643616 slewie the pi-rat
slewie the pi-rat's picture

meet the author, BiCheZ!

from slewie intel files


Mon, 07/23/2012 - 16:55 | 2643711 tenpanhandle
tenpanhandle's picture

isn't that an agent that binds runny shit?

Mon, 07/23/2012 - 21:58 | 2644378 TheFourthStooge-ing
TheFourthStooge-ing's picture


isn't that an agent that binds runny shit?

You're thinking of Kaophucktate.

Mon, 07/23/2012 - 15:42 | 2643552 Offthebeach
Offthebeach's picture

" E-Mail verification ".

Yeah. That'll work. That's the ticket.

( How come the CME IP address runs through Lagos, Nigeria? )

Mon, 07/23/2012 - 22:03 | 2644381 TheFourthStooge-ing
TheFourthStooge-ing's picture


" E-Mail verification ".

Yeah. That'll work. That's the ticket.

( How come the CME IP address runs through Lagos, Nigeria? )

Because CME has outsourced their email verification to these guys:

Mon, 07/23/2012 - 16:26 | 2643645 Dingleberry
Dingleberry's picture

Glad to hear that there is an exodus of cash leaving those scumbag fuckers. I thought MF Global would have started it. But I guess PFG got everyone's attention.

Mon, 07/23/2012 - 14:11 | 2643267 Joebloinvestor
Joebloinvestor's picture

Arrest Gensler first, that would be a good start.

Mon, 07/23/2012 - 14:17 | 2643298 EscapeKey
EscapeKey's picture

Arrests are for common people.

Mon, 07/23/2012 - 15:26 | 2643513 GMadScientist
GMadScientist's picture

Okay, then assassinations it is.

Mon, 07/23/2012 - 16:49 | 2643701 TrainWreck1
TrainWreck1's picture

Don't be silly. The worst they will get is a solid spanking.

Which they will enjoy. Yes! Hit me hit me hit me!

Mon, 07/23/2012 - 14:23 | 2643315 WTFx10
WTFx10's picture

"Gensler" What nationality is he? Jewish or Criminal Syndicate Traitor to the US Zionist Jew?

Mon, 07/23/2012 - 15:27 | 2643515 GMadScientist
GMadScientist's picture

"Nation"?! LOL

Mon, 07/23/2012 - 14:25 | 2643330 PontifexMaximus
PontifexMaximus's picture

As long as Gary Maxi Crook Gensler is in charge and protected by Obama, nothing will happen!

Mon, 07/23/2012 - 16:28 | 2643654 earnyermoney
earnyermoney's picture

Why the editorial in today's Old Gray Whore floated Obama's replacement for Timmay. Gary G. LOL

Mon, 07/23/2012 - 14:27 | 2643341 The Watchman
The Watchman's picture

Vaporization not likely. Trust us!

Mon, 07/23/2012 - 14:41 | 2643377 metastar
metastar's picture

Who Watches The Watchmen? ;)

Mon, 07/23/2012 - 15:18 | 2643483 The Disappointed
The Disappointed's picture

'Do you like red ants or black ants?'

Mon, 07/23/2012 - 14:11 | 2643269 Fidel Sarcastro
Fidel Sarcastro's picture

"We want you to know that CME Group is committed to making whatever
changes are necessary to strengthen customer protections, restore
confidence in the futures industry and ensure the effectiveness of these
critical markets."


How about throwing the crooks in JAIL!  Start with Corzine

Mon, 07/23/2012 - 14:20 | 2643309 DeadFred
DeadFred's picture

That's as far as I could get before the gag reflex made me stop reading. Did I miss anything?

Mon, 07/23/2012 - 14:25 | 2643327 Buckaroo Banzai
Buckaroo Banzai's picture

To say the CME has a credibility problem is the understatement of the decade.

Words are wind.

Mon, 07/23/2012 - 15:13 | 2643465 AgShaman
AgShaman's picture

It's no big deal....the CME is a flawless exchange that functions as a place of shelter during times of financial crisis.

At least that's what it's "resident parasites" claim

Have an entertaining listen from the recent past:

100 billion slush fund of collateral to cover any bets gone awry?.....hahahaha, yeah right

Mon, 07/23/2012 - 14:37 | 2643372 firstdivision
firstdivision's picture

You know November 6, 2012 will be the day that Corzine will lose 50 lbs from sweating alone.

Mon, 07/23/2012 - 15:08 | 2643446 Totentänzerlied
Totentänzerlied's picture

The Bush syndicate got off scott-free when Obummer took over, no reason to think the Obummer Mafia would get more than a wrist-slap if the Mittens Mor(m)ons take over.

Mon, 07/23/2012 - 16:53 | 2643706 TrainWreck1
TrainWreck1's picture

Corzine will get a speed trial & pardon should the kenyan lose.

Same as Marc Rich (with a little help from his ex)


Mon, 07/23/2012 - 14:46 | 2643393 PontifexMaximus
PontifexMaximus's picture

No, no, start with Gary Gensler

Mon, 07/23/2012 - 14:53 | 2643411 eclectic syncretist
eclectic syncretist's picture

How about just returning the money that was stolen.  Wouldn't that inspire more confidence that letting it remain stolen and noboby even being charged with a crime?  What a joke the CME is!!!

Mon, 07/23/2012 - 16:01 | 2643600 Liquid Courage
Liquid Courage's picture

Exactly what I was thinking ... then I flashed on that scene in The Godfather where weasel lawyer Tom O'Hagan refuses to accept the letter Kay wants to send to Michael when he's laying low in Sicily:

KAY: Tom, if I leave this with you can't you see that it gets to Michael?

TOM: Now Kay, if I accept that letter, they could prove in a court of law that I knew Michael Corleone's whereabouts ....

So ... the money's not stolen ... it's LOST, right? That's their story and they're sticking to it! The fucking weasels. If they were to return it, it would be an admission of guilt.

These are the types we're dealing with here. What's the fucking difference? In fact there's a story I've heard about a Capo di Tutti Capo who was given a tour of the NYSE some years ago and reportedly said: "We're in the wrong business."

Thieving bastards!

Tue, 07/24/2012 - 00:53 | 2644655 Bringin It
Bringin It's picture

Do not point out that at the upper eschelons, the banking Mafia appears to be Jewish.  You will be temed ... anti-semetic.  You can have a Scicilian Mafia, an Italian one, a Mexican one, a Russian one, etc.  But you can not have a Jewish one ... ever ... even if it appears as such before your very eyes.

Mon, 07/23/2012 - 16:06 | 2643607 Things that go bump
Things that go bump's picture

Somebody with nothing much to lose anymore is going to abandon any hope that he is going to get any portion of his stolen money back and is going to go postal.  

Mon, 07/23/2012 - 19:37 | 2644097 mkkby
mkkby's picture

And how about knocking off the rehypothication scam?

Mon, 07/23/2012 - 20:27 | 2644198 Blano
Blano's picture

This letter sounds like one of those "of course we have plenty of liquidity" comments right before the collapse.

Mon, 07/23/2012 - 14:11 | 2643271 MillionDollarBoner_
MillionDollarBoner_'s picture

Die you fucker...die...

Why won't it die!

Mon, 07/23/2012 - 14:11 | 2643272 Cdad
Cdad's picture

Just another part of the terminally ill financial services group in America.  Either fire everyone from the leadership structure...or shut the operation down.  This isn't the time for half measures...or sappy letters. 

Mon, 07/23/2012 - 14:12 | 2643274 ReallySparky
ReallySparky's picture

Seriously?  Duffy, call your Mother and apologize for being such a loser.

Mon, 07/23/2012 - 14:12 | 2643276 q99x2
q99x2's picture

Fool me once and shame on you. Fool me twice and shame on me.

You take those commodities and shove em up your ass. CME M'fers.

Mon, 07/23/2012 - 14:14 | 2643279 PulpCutter
PulpCutter's picture

Physical; if someone else is holding your PMs, they've been gone for a while.

Mon, 07/23/2012 - 14:13 | 2643282 MillionDollarBoner_
MillionDollarBoner_'s picture

"Corzine Rule"

I love it! They named a Rule after him !:O)

Mon, 07/23/2012 - 14:19 | 2643305 EscapeKey
EscapeKey's picture

No doubt it's got something to do with a lower limit on "donations" to the political elite.

Mon, 07/23/2012 - 14:27 | 2643337 CommunityStandard
CommunityStandard's picture

The Corzine rule should have been about keeping white-collar inmates segregated from violent criminals, otherwise excessive raping may occur.

Mon, 07/23/2012 - 14:13 | 2643285 I need more cowbell
I need more cowbell's picture

Phupinder Gill, CEO? Really? I always wondered what happened to good 'ol Phupinder.

Mon, 07/23/2012 - 14:24 | 2643325 TrainWreck1
TrainWreck1's picture

Phupinder, Phupinder, bo-bupinder,

Banana-fana fo-fupinder




Mon, 07/23/2012 - 14:14 | 2643290 lizzy36
lizzy36's picture

Fool me once shame on you.....fool me twice shame on me.

That in a nutshell is the slogan of the average client.

When regulatory capture reaches this point, when trust disappears, it takes generations to be regained. Not t+3.

Mon, 07/23/2012 - 14:22 | 2643320 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

So instead putting trust in the Banking Houses, let's put our trust in the Central Banks, because they never lie, cheat, and steal our money.

Mon, 07/23/2012 - 14:29 | 2643342 hedgeless_horseman
hedgeless_horseman's picture



Congress, federal regulators, industry regulators, industry groups and CME are all working towards the same goal: to ensure that market users have confidence in all aspects of the industry, and that the appropriate protections are in place at every point in the system.

Regulatory capture, indeed.  I come back to the same question over and over.  Are they evil, or stupid?  As best I can tell, the regulators are stupid, and the industry is evil.

Mon, 07/23/2012 - 14:32 | 2643357 The Big Ching-aso
The Big Ching-aso's picture



Maybe just stupidly evil.   A truly great criminal doesn't get caught by mortals.

Mon, 07/23/2012 - 14:35 | 2643367 CommunityStandard
CommunityStandard's picture

The greater criminal will commit their evil acts in the open and have everyone convinced they are acts of good.

Mon, 07/23/2012 - 14:45 | 2643384 NotApplicable
NotApplicable's picture

"Touched - by Jerry Sandusky"

Mon, 07/23/2012 - 14:52 | 2643407 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

So you are saying the antichrist, the beast, if you will, is not just a single man, but the economic and financial paradigm as a whole? 

I think I will agree.

Mon, 07/23/2012 - 15:14 | 2643467 pavman
pavman's picture

The greater criminal will commit their evil acts in the open and have everyone convinced they are acts of good.

And here I thought we called those people politicians.

Mon, 07/23/2012 - 15:24 | 2643500 Widowmaker
Widowmaker's picture

That's because you can't tell they are the same industry.

Mon, 07/23/2012 - 15:52 | 2643573 RiverRoad
RiverRoad's picture

The regulators are paid to be stupid.

Mon, 07/23/2012 - 14:28 | 2643345 DeadFred
DeadFred's picture

Lack of trust is the goal. Get retail out of futures market and the big boys and algos won't have as much trouble moving things where they want every night. manipulation is cheaper in the futures market and much cheaper if you are the only player in the game. Don't forget the added bonus of stealing the retail customers money, sweet icing on the cake.

Mon, 07/23/2012 - 15:33 | 2643534 JLee2027
JLee2027's picture

Some physical silver is getting a better price than CME's paper silver.  As the CME continues it's death roll, I would expect that to widen. A lot.

Mon, 07/23/2012 - 16:55 | 2643710 Marginal Call
Marginal Call's picture

They can move the market wherever they want, whenever.  So, no they don't need to chase retail out to do that.  Not only that, chasing retail out is "killing the golden goose" and only leaves each other to feed off of. 


If you're the only player in the game, who can you offload too?  That's how JPM got fucked.  They are in fact, desperate for retail to come back in volume. 

Mon, 07/23/2012 - 17:34 | 2643800 SWCroaker
SWCroaker's picture

Um, da gubbermint?

Mon, 07/23/2012 - 14:14 | 2643291 i_call_you_my_base
i_call_you_my_base's picture

I know if I had millions of dollars at one of those firms this letter would make me feel a lot better.

Mon, 07/23/2012 - 14:15 | 2643292 Joebloinvestor
Joebloinvestor's picture

"Periodic electronic confirmation of customer segregation balances from the firms via e-confirm system"

What a crock of shit.

How about you have the auditor do a "face to face" with the bank "holding" the money and a reconciliation of what the balance being reported is and what the bank says is on deposit?

At what price point (I guess $200 million isn't big enough) does an auditor take his job seriously?

Mon, 07/23/2012 - 14:20 | 2643314 Fail2Deliver
Fail2Deliver's picture

Umm, excuse me were they not SUPPOSED to do this all along? Are they not the regulators and getting paid to to this for the customers? Now they are going to do double secret inspections! Is this a serious letter? Really?

Bottom line is NOTHING HAS CHANGED! no one has gone to jail. No one has got their money back. Hell, the guy incharge of oversite has not even been fired! NOTHING HAS CHANGED.

Get your money (whats lft of it) OUT of the CME!

Mon, 07/23/2012 - 14:16 | 2643293 TheSilverJournal
TheSilverJournal's picture

When they are forced to officially say "everything's fine," that's when you know it's not fine.

Mon, 07/23/2012 - 14:39 | 2643375 i_call_you_my_base
i_call_you_my_base's picture

Right, there will probably be another vaporization within days.

Mon, 07/23/2012 - 14:17 | 2643299 PulpCutter
PulpCutter's picture

If CME actually meant to clean the business up, they'd be the ones yelling the loudest for prosecutions and heavy sentences.  They'd be assisting the investogators in any way possible.  And in particular, they'd be shining a big light on whatever funky shit went on between MFG and JPM in the closing hours, and between Peregrin and JPM in the closing hours.

Mon, 07/23/2012 - 14:22 | 2643310 j0nx
j0nx's picture

It all boils down to that pulpcutter. Their former clients should be telling them that and then telling them to FOAD when they make excuses as to why they haven't done that. I know exactly where all that MFG money went: right into a certain someone's reelection campaign via every backdoor possible.

Mon, 07/23/2012 - 14:57 | 2643419 Endgamer
Endgamer's picture

Ah "Transparency".

"You keep using that word. I do not think it means what you think it means."

Mon, 07/23/2012 - 15:15 | 2643469 TruthBeforeAll
TruthBeforeAll's picture

Uh, the more transparent something is, the less you can see it. See how that works.

Tue, 07/24/2012 - 14:25 | 2646339 Kobe Beef
Kobe Beef's picture

HAR! good one.

Mon, 07/23/2012 - 15:17 | 2643470 TruthBeforeAll
TruthBeforeAll's picture


Mon, 07/23/2012 - 14:46 | 2643392 insanelysane
insanelysane's picture

Exactly!  Abbreviated transcript below.

JPM to MFG:  We can't take the money without a signature saying the money is yours and not your clients.

MFG to JPM:  We're too busy to sign anything.

JPM to MFG: We really need a signature from somebody there.

MFG to JPM:  Just shut up and take the money.

JPM internal:  We'll just need to keep the money.  MFG is out of business so there is no one to send it to.  Even we don't trust the government to hold it.

Mon, 07/23/2012 - 15:25 | 2643508 Widowmaker
Widowmaker's picture

They don't give a shit, you paid for their crimes.

"We saved the banks but lost the country."

- Timothy "Fuckup" Geithner

Mon, 07/23/2012 - 14:17 | 2643300 RacerX
RacerX's picture

fuck the cme

Mon, 07/23/2012 - 14:17 | 2643301 Piranhanoia
Piranhanoia's picture

How much actual money have you returned to the clients then considering you guarantee their protection?

Didn't think so.

Mon, 07/23/2012 - 14:18 | 2643302 CommunityStandard
CommunityStandard's picture

We want you to know that CME Group is committed to making whatever changes are necessary to strengthen customer protections, restore confidence in the futures industry and ensure the effectiveness of these critical markets.  Do not presume, however, this means we will pursue any action against those responsible for raiding the segregated accounts.  That would be silly.


Mon, 07/23/2012 - 14:28 | 2643303 Haole
Haole's picture

Anyone who believes any of this shit deserves to lose absolutely everything, so shall it be.  Consider it financial Darwinian stress...

Rant removed.


Mon, 07/23/2012 - 14:18 | 2643304 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I'm so sory, baby.  I'll never hit you again.  I promise. 

You know I love you....

Mon, 07/23/2012 - 15:24 | 2643502 Hype Alert
Hype Alert's picture

It was just money, it meant nothing!   You I care about.

Mon, 07/23/2012 - 16:00 | 2643596 Metalredneck
Metalredneck's picture

Sing along: " Now you're just some money that I used to blow..."

Mon, 07/23/2012 - 14:19 | 2643306 Jonas Parker
Jonas Parker's picture

Make good all losses  incurred by individual traders at MFG and PFG. Then you can talk. Until that time, don't waste our time with your "junk mail"!

Mon, 07/23/2012 - 14:20 | 2643308 Conax
Conax's picture

Over at the Silver Doctors there are two stories- one where the Swedes accuse silver of being poisonous, and the other has Indian bankers begging everyone to stop, please stop buying gold!

Now the CME saying we'll get someone else to handle the money..

"We are exploring the concept of having clearing houses or other depositories hold all customer segregated funds <snip>"


You peed the bed, Phupinder, so go lay in it.

Mon, 07/23/2012 - 14:34 | 2643364 ziggy59
ziggy59's picture

They had jpm do that

Mon, 07/23/2012 - 14:20 | 2643313 disabledvet
disabledvet's picture

"new rules"? "periodic"? More like "new fools" and "idiotic." i knew I had a problem with spelling...but the CME?

Mon, 07/23/2012 - 14:21 | 2643317 The Gooch
The Gooch's picture

Dear muppets,


Mon, 07/23/2012 - 14:21 | 2643319 EscapeKey
EscapeKey's picture

Honestly, I can't even force myself to read that fucking drivel.

MORE FUCKING WORDS. Yes, because much like your fellow crooks, you're sorry. REALLY REALLY SORRY. And that makes it ALL MUCH BETTER. So, all of you muppe... er, I mean sophisticated investors come back in the water (or we won't make our bonus targets).

Action speaks louder than words, and you're fucking intentionally impotent.

Mon, 07/23/2012 - 15:35 | 2643538 JLee2027
JLee2027's picture

Yup. It's when Obama/Bernanke/Dimon/pick your crook/etc comes on TV. I just change the channel and haven't missed a thing.

Mon, 07/23/2012 - 16:28 | 2643656 slewie the pi-rat
slewie the pi-rat's picture

you know how much i love it when you talk like that,  E_K

Mon, 07/23/2012 - 17:15 | 2643756 tenpanhandle
tenpanhandle's picture

i'll get back in the water after the chinese buy the cme.

Tue, 07/24/2012 - 14:30 | 2646367 Kobe Beef
Kobe Beef's picture

Or open an account in Hong Kong. Is that still legal?

Mon, 07/23/2012 - 14:23 | 2643322 semperfi
semperfi's picture

" CME Group is committed to making whatever changes are necessary "

Start with these changes:

1. lock up Corzine

2. return all of the stolen money plus 50% interest

Mon, 07/23/2012 - 14:23 | 2643323 GolfHatesMe
GolfHatesMe's picture

Green by 3:30

Mon, 07/23/2012 - 15:28 | 2643517 GMadScientist
GMadScientist's picture

It's not just golf.

Mon, 07/23/2012 - 14:24 | 2643326 libertus
libertus's picture

Now I'm afraid. CME is clearly saying that they are losing money and want to do something. So they have enough to cover all the bets? Does the market actually work? I don't think so. Sounds like there is trouble in Chicago. 

Mon, 07/23/2012 - 14:52 | 2643408 insanelysane
insanelysane's picture

"We need to do something to save our phoney baloney jobs gentlemen!"

--The GOV in Blazing Saddles

Mon, 07/23/2012 - 16:04 | 2643604 Metalredneck
Metalredneck's picture


Mon, 07/23/2012 - 17:00 | 2643719 Conax
Conax's picture

I didn't get a harumph outa that guy over there..

Mon, 07/23/2012 - 14:57 | 2643421 cougar_w
cougar_w's picture

Yeah they're in a panic. Their Ponzi is bleeding to death, right before their eyes. My guess is they'll be off-shoring cash by the metric ass-load all week.

Anyone with money in a client account better get it out or prepare to write it off as a loss.

This entire industry is set to implode. They'll scatter like roaches now, hoping not to be stepped on by some state AG with an eye for higher office.

Mon, 07/23/2012 - 15:29 | 2643519 Widowmaker
Widowmaker's picture

"...hoping not to be stepped on by some state AG with an eye for higher office."


C'mon W, let's settle.  I'll just take your house and if you find out I'll pay you $.04.

Mon, 07/23/2012 - 15:41 | 2643550 Bastiat
Bastiat's picture

Plus one for "metric ass-load"

Mon, 07/23/2012 - 14:25 | 2643329 orangedrinkandchips
orangedrinkandchips's picture




Mon, 07/23/2012 - 15:22 | 2643332 alarm bell
alarm bell's picture

Records, we don't keep no records.  It is very very complex in all its complexity.

Mon, 07/23/2012 - 14:26 | 2643333 digalert
digalert's picture

One day trust will be lost in the USD...oops...that just slipped out, never mind.

Mon, 07/23/2012 - 14:27 | 2643339 ziggy59
ziggy59's picture

Obviously, they didnt get it all...
Any one whose accounts were not decimated and still there, deserve the second cumming...the money shot

...with no KY

Mon, 07/23/2012 - 14:31 | 2643344 orangedrinkandchips
orangedrinkandchips's picture

This shit is like the Former heads of Penn State (pun intended) saying we will do something going foward about the ramapnt predators preying on kids.....namely OUR FUCKING JOBS....


but then who cares about the lives that are ruined while I sit idle....heck, it aint me or my kids!


Surprise audits on seg $.....whoo-hooo....thats a hoot! shit, by the time you surprise them....IT'S YOU WHO WILL BE SURPRISED!!! IT'S CORZINED!!!



Mon, 07/23/2012 - 14:28 | 2643346 Bay of Pigs
Bay of Pigs's picture

Maybe Bart Chilton can call Duffy and get to the bottom of this?

Let's get another "investigation" going or perhaps a Blue Ribbon Panel to check it out.

Mon, 07/23/2012 - 15:21 | 2643463 Haole
Haole's picture

Get to the bottom of it, figuratively and literally like finely-groomed poodles reflexively sniffing eachother's asses. ;)


Mon, 07/23/2012 - 14:31 | 2643351 Bartanist
Bartanist's picture

If CME sues JP Morgan and the CFTC for the return of client money, then maybe they would be perceived as something more than just a tool used to defraud customers.

Mon, 07/23/2012 - 14:33 | 2643360 Bartanist
Bartanist's picture

Words are cheap.

Get Corzine to disgorge the money he personally took and have him sent to jail.

Otherwise CME is just an Obama, trying to con people with the words they want to hear and actually working against client best interests.

Mon, 07/23/2012 - 14:31 | 2643353 buzzsaw99
buzzsaw99's picture

I have confidence, confidence that I will get fukked mercilessly if I play in their kitty box.

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