Lehman Brothers Inc., the CME Group clearing member that filed for bankruptcy Monday, continues to meet all of its obligations to CME Clearing
and continues to operate as normal, CME Group
stated in a press release
CME Group's clearing member, Lehman Brothers Inc., is a subsidiary of Lehman Brothers Holdings Inc., but is a separate company with its own accounts, assets and customers, according to the press release.
All customer funds are required to be segregated from firm assets, held in specially identified accounts and are not subject to any creditors' claims against the firm, the statement said.
The accounts, assets and customers are protected through a comprehensive federal statutory and regulatory regime and other financial safeguards and risk management protections provided by CME Clearing, CME stated.
The clearing house clears, settles and guarantees all matched transactions at CME Group's exchanges, including the Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT) and New York Mecantile Exchange (NYMEX), the press release stated.
Wall Street bank Lehman Brothers filed for bankruptcy protection Monday morning afer failing to find a buyer or government support over the weekend. The fall of Lehman Brothers coincides with Bank of America's purchase of Merril Lynch while insurance giant American International Group (AIG) also seeks out help from the government.
Financial Market Turmoil Opens the Week