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Federal judge orders MF Global to pay customers $1 billion

MF Global sign is seen in the office building where MF Global Holdings Ltd have offices in Manhattan on November 1, 2011 in New York.
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MF Global sign is seen in the office building where MF Global Holdings Ltd have offices in Manhattan on November 1, 2011 in New York.

A federal judge in New York has ordered MF Global to return more than $1 billion to harmed customers and pay an additional $100 million penalty as part of a civil settlement with U.S. derivatives regulators.

The Nov. 8 court order by U.S. District Judge Victor Marrero for the Southern District of New York was announced by the Commodity Futures Trading Commission in a Monday press release.

(Read more: JPMorgan in $4.5 billion mortgage settlement)

The approval by the judge marks the end of the commission's litigation, initiated in June against MF Global over the brokerage's October 2011 collapse and loss of more than $1 billion in customer money.

The CFTC's civil case against defendants MF Global Holdings, former Chief Executive Jon Corzine and former Assistant Treasurer Edith O'Brien, however, is still ongoing.

—By Reuters