The Financial Services Authority, the City watchdog, said yesterday that after inspecting the Griffin books it was "confident" it could give a 50 per cent payout to all the traders hit by the scandal.
Liffe said the payouts would come in the next few days in a bid to get up to 100 "locals" - independent dealers who risk their own money - back into business. It is understood that the losses by the dealers - who account for around 10 per cent of the exchange's locals capacity - range from pounds 15,000 to pounds 1m.
Griffin, the London-based unit of a well-known Chicago trading house, collapsed two weeks ago after rogue trader John Park lost pounds 6.25m on a German bunds futures contract.
The FSA's move came as Tullett & Tokyo, the broker used by Mr Park for his deals, said that it could take legal action against Griffin and the Korean-born trader .
Tullett & Tokyo said that it was set to lose up to DM1.2m (pounds 430,000) as a result of Mr Park's deals.
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