Following the insolvency of Peregrine Financial Group and PFGBest, CME Group has 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 to hedge their crops and livestock.
Under the terms of the Family Farmer and Rancher Protection Fund, farmers and ranchers using CME Group products 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. 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.
In order for CME to begin paying benefits to qualifying customers under the fund, applications must be received by Friday, October 5. CME Group expects to pay benefits to qualifying customers in the fourth quarter of this year. Members or customers may submit any questions to CME Group at email@example.com. The application and other information about the program can be found at www.cmegroup.com/familyfarmerfund.