The U.S. Commodity Futures Trading Commission yesterday won court approval to intervene in a $205 million dispute between oil major ConocoPhillips and the bankruptcy trustee for MF Global Inc., Reuters reported. At issue is the treatment of letters of credit that the oil company -- a longstanding MF Global customer -- had lodged with the now bankrupt brokerage to back its energy trades. The CFTC told a federal court in a filing last week that it should be allowed to intervene because of the public policy interest in "the correct interpretation" of law and rules governing the futures industry. The regulator, which favors the trustee's interpretation of the letters of credit issue, will be able to present its views in court and try to influence a decision that could cost Conoco tens of millions of dollars should it go against the company.
