With legislators attempting to get to the bottom of the collapse and bankruptcy of MF GlobalTerrance Duffy, CME Group’s executive chairman, testified before the Senate Agriculture Committee on Tuesday.

Duffy, who followed the testimony of a trio of MF Global executives, said that the firm’s brass were not as clueless to the loss of customer funds as they have claimed. Duffy, said Kansas Sen. Pat Roberts, had “sort of tossed a bomb” with the revelations.

The relevant portion of Duffy’s testimony:

“By the middle of the week of Oct. 24, MF Global had announced poor earnings and was downgraded by several credit rating firms sparking rumors it would sell its brokerage business.

“CME was the designated self-regulatory organization for MF Global with responsibility for auditing its futures business. On Thursday, Oct. 27, two of our auditors went to MF Global’s Chicago offices to review (the firm’s) daily segregation report for the close of business on Wednesday, Oct. 26.

“Wednesday’s segregation report, which is not available until Thursday, showed full compliance. Our auditors asked for the material necessary to check the numbers on the report against the general ledger and third-party sources and began the process of tying out the numbers for Wednesday’s report.

“That substantial review process of the Wednesday segregation report continued on Thursday and Friday.

“MF Global’s segregation report for Thursday, Oct. 27 — delivered to CME on Friday, Oct. 28 — also stated that MF Global remained in full compliance with segregation requirements. In fact, it showed the firm held $200 million in excess segregated funds.