The CME Group said late on Monday it has suspended MF Global Inc as a member of the exchange as the broker-dealer filed for US Chapter 11 bankruptcy protection.
"The President of the Clearing House is announcing that MF Global Inc is deemed insolvent and is automatically suspended as a clearing member," the CME said in a notice.
Earlier in the day, the CME along with exchange operator ICE, limited trading for customers of the 200-year-old futures brokerage's trade to liquidations only, as the firm's sudden collapse in less than a week made it the biggest US casualty of European debt crisis.
Trading activity in gold, crude oil and grain futures slowed to a crawl as the bankruptcy forced a chaotic scramble to untangle trading positions. MF Global brokers were barred from trading floors, according to Chicago traders.
Commodities such as natural gas and crude where MF Global had a strong presence, have been hit harder than others.
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