BREAKING NEWS FROM CNBC'S KAYLA TAUSCHE: MF GLOBAL IN ADVANCED NEGOTIATIONS TO SELL FUTURES UNIT

WHEN: TODAY, FRIDAY, OCTOBER 28TH

WHERE: CNBC'S "SQUAWK ON THE STREET"

Following is the unofficial transcript of breaking news from CNBC's Kayla Tausche. All references must be sourced to CNBC.

KAYLA TAUSCHE: CARL I JUST SPOKE TO A SOURCE CLOSE TO THE COMPANY WHO SAID THAT MF IS IN ADVANCED NEGOTIATIONS TO SELL ITS FUTURES ARM THAT'S WHAT WE CALL THE FCM UNIT THEY HOPE TO STRIKE A DEAL BY MONDAY THEY'LL BE WORKING THROUGH THE WEEKEND THEY COULD BE DONE AS SOON AS TODAY THE SOURCE SAID THE COMPANY IS IN ADVANCED NEGOTIATIONS WITH A NARROW PLAYING FIELD OF BIDDERS THAT INCLUDES BIG BANKS, PRIVATE EQUITY FIRMS AND ALTERNATIVE ASSET MANAGERS NOW THE SOURCE TELLS ME ALL OPTIONS ARE STILL ON THE TABLE INCLUDING A SALE OF THE BROKER DEALER IT REMAINS UNCLEAR WITH SHARES BELOW A DOLLAR WHETHER THAT BROKER DEALER UNIT COULD REMAIN AS A GOING CONCERN I AM ALSO TOLD BY THE SOURCE THAT THE COMPANY DID DRAW DOWN ITS $1.3 BILLION DOLLAR CREDITS LINES BUT THAT WAS TO PRESERVE LIQUIDITY AND THAT ANY SALE WOULD NOT NEED ASSISTANCE FROM TREASURY, FDIC OR ANY OTHER GOVERNMENT AGENCY I AM TOLD THAT THE COMPANY IS STILL IN GOOD STANDING AND IN DISCUSSIONS WITH REGULATORS AND ITS CREDITOR WE WILL HAVE MORE ON THIS AS IT HAPPENS OBVIOUSLY MF GLOBAL IS A STORY THAT IS MOVING VERY QUICKLY AND WE WILL HAVE UPDATES AS SOON AS WE CAN.

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