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Foundation Ends New Grants After MF Global Collapse

December 20, 2011, 10:29 am

The fund from which financial-exchange operator CME Group does most of its charitable giving has stopped making new grants as its assets are turned over to customers of the bankrupt brokerage firm MF Global Holdings, according to Reuters.

CME, which runs the Chicago Board of Trade, the Chicago Mercantile Exchange, and the New York Mercantile Exchange, has agreed to give former MF Global clients all $50-million in the CME Trust, a fund launched to help traders caught in a broker default but more recently was used for philanthropy.

The CME Group Foundation, the largest of the exchange operator’s charitable units, announced on its Web site that new grant proposals “will be put on hold until further notice.” The foundation said it would honor existing grant commitments.

CME has given $22-million in the past five years, mostly to support charter schools, higher education, and early-learning efforts in the Chicago area.

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