Below please find links which search the linked media outlet for the latest news on MF Global. A chronological roll of relevant news through the bankruptcy may also be found below.
MFGI Liquidation Trustee Motions Spark Commotion There was a flurry of activity following recent motions by the MFGI liquidation trustee late on Wednesday after MF Global Holdings Ltd. bankruptcy judge Martin Glenn pushed back a hearing on the trustee’s expedited claim to next week and ordered trustee James Giddens to meet with its objectors. Futures Magazine (11/17)
Segregation of customer funds is key, CFTC's Gensler says Gary Gensler, chairman of the Commodity Futures Trading Commission, emphasized that segregation of customer funds remains at the heart of market regulation. Gensler's comments come amid claims that MF Global Holdings failed to adhere to the practice. He said he is aiming to get the CFTC to vote on Dec. 5 on a rule that would govern how firms invest customer funds. "It is critical that the CFTC finish a rule that will enhance customer protections regarding where clearinghouses and futures commission merchants can invest customer funds," Gensler said. The Wall Street Journal (tiered subscription model) (11/16), Financial Times (tiered subscription model) (11/16), MarketWatch (11/16)
Giddens files to release more MF Global client cash James Giddens, the trustee overseeing MF Global's bankruptcy, has filed to release about $520 million to the brokerage's commodity customers. The cash has been tied up for more than two weeks. Traders have been trying to gain access to their funds, so the move, which must be approved by the bankruptcy court, would provide some relief. Reuters (11/16)
November 15, 2011
CFTC closes in on missing MF Global funds, Chilton says The Commodity Futures Trading Commission continues to look for the estimated $600 million in missing MF Global customer funds. "We're closer than when we first went in there," said Bart Chilton, a Democratic member of the CFTC. "The money is not where it should be. I think something nefarious has happened, potentially something illegal." Reuters (11/15)
November 12, 2011
CME offers to help MF Global customers recover their money CME Group has offered $300 million to help MF Global clients in an effort to contain damage from the brokerage's collapse. "We believe this extraordinary measure is necessary to ensure that all customers are treated fairly during the unique and challenging circumstances surrounding the failure of MF Global," said Craig Donohue, chief executive at CME. Meanwhile, MF Global's bankruptcy has caused investors to question whether their money is safe at rival brokerages. Financial Times (tiered subscription model) (11/11), Chicago Tribune (11/12), The Wall Street Journal (tiered subscription model) (11/12), Reuters (11/12)
SEC takes aim at fund industry's use of derivatives The Securities and Exchange Commission is considering disclosure requirements and restrictions on the fund industry's use of derivatives. State Street Global Advisors, BlackRock and other investment companies defend their use of derivatives in letters submitted to the SEC. "Any set of mechanical rules cannot take account of the diversity of derivatives and the multiplicity of ways they may be used by portfolio managers," wrote Joanne Medero and Ira Shapiro, managing directors at BlackRock. "Used appropriately, derivatives can be effective tools in seeking to achieve returns and control risks in funds." The Wall Street Journal (tiered subscription model) (11/12), Bloomberg (11/10)
CNBC on MF Global asset freeze (video will not be visible to IOS devices):
November 10, 2011
MF Global trustee says inquiry is needed before collateral distribution James Giddens, the trustee handling MF Global Holdings' liquidation, said an investigation into any shortfall at the collapsed brokerage is necessary before he can distribute any more collateral to commodity customers. "The law requires that all commodities customers be treated fairly, and on a pro rata basis," according to his website. "While we have received many requests for individual transfers, we must treat all customers equally and fairly, and do not have authority to make such transfers." Bloomberg (11/10)
MF Global collapse prompts review of other brokers The Commodity Futures Trading Commission, after the collapse of MF Global Holdings, said it would review similar futures brokers to make sure they are segregating customer deposits from their own funds. Financial Times (tiered subscription model) (11/10)
Administrator questions MF Global Australia client claims Chris Campbell, a partner at Deloitte, and joint administrator for MF Global Australia, said some clients have made claims that are much higher than the brokerage says it owes them. "If clients continue to do that, there will be a shortfall in the full funds of those claims that are valid, because there's a finite amount of cash that needs to be split between them all," Campbell said. The Sydney Morning Herald (Australia)/Australian Associated Press (11/11)
MF Global sold European sovereign debt before collapse: MF Global Holdings sold more than 20% of its European sovereign-debt holdings at a loss in the days before it filed for bankruptcy, a source said. The sales followed MF Global's quarterly loss announcement. The company's remaining $4.8 billion in sovereign bonds were turned over to its bankruptcy administrator in Britain, KPMG, according to the source. The Wall Street Journal (tiered subscription model) (11/9)
Transfer of MF Global commodities accounts is nearly done: Kent Jarrell, a spokesman for MF Global Holdings trustee James Giddens, said many of the firm's customer accounts are "out of date, inactive, or very small," reducing the number that must be transferred. "It really comes down to about 50,000 commodity accounts, and maybe 400 securities accounts," Jarrell wrote in an e-mail. Once the accounts are transferred, the new brokers will send information to the customers, Jarrell said. Bloomberg (11/9)
Relief might be premature for clients who withdrew from MF Global: Koch Industries and other former customers of MF Global Holdings withdrew billions of dollars out of their accounts at the brokerage in the weeks and months leading up to its collapse. Those customers have likely breathed a sigh of relief, but it might be premature as they face the threat of clawbacks. Reuters (11/10)
Schapiro says MF Global's collapse wasn't a regulatory failure Securities and Exchange Commission Chairman Mary Schapiro told PBS' "Nightly Business Report" that the collapse of MF Global was the company's fault, not that of regulators. "MF Global's failure is a result of MF Global decisions, investment decisions, bad decisions and not the result of regulatory failure in my view," Schapiro said. PBS (11/7)
Search continues for missing MF Global customer funds, Gensler says: Gary Gensler, chairman of the Commodity Futures Trading Commission, said the search for more than $630 million in missing MF Global customer funds continues as his agency investigates the brokerage's collapse. Gensler also warned that Wall Street needs to ensure the protection of client assets. "The most troubling aspect about the MF Global situation is the shortfall of customer money at the firm," Gensler was to say, according to prepared testimony. "Segregation of customer funds is the core foundation of customer protection in the commodity futures and swaps markets." Those with assets tied to MF Global are trying to regain access to money in MF Global accounts. A bankruptcy trustee has ordered the release of some assets to clearing firms, but investors say confusion reigns. The New York Times (tiered subscription model)/DealBook blog (11/3), The Wall Street Journal (tiered subscription model)/Dow Jones Newswires (11/3)
Clearing firms divvy up MF Global's clients: Several clearing firms are filling a vacuum left by the collapse of MF Global Holdings by dividing up clients of the company's U.S. brokerage. CME Group is leading the process of vetting MF Global account holders. The Wall Street Journal (tiered subscription model) (11/3)
November 2, 2011
Bankruptcy judge approves MF Global account-transfer plan James Giddens, the trustee picked to liquidate MF Global's broker-dealer and futures commission merchant unit, has been granted permission to transfer thousands of customer accounts out of MF Global to other clearing firms. James Kobak, an attorney for Giddens, said the accounts will transfer with 60% collateral. The remaining 40% will be left with the clearing organization. CME Group named six firms to receive bulk transfers: ABN Amro Chicago Clearing, ADM Investor Services, Dorman Trading, FCStone, R.J. O'Brien and Rosenthal Collins Group. In related news, CME Group informed the Commodity Futures Trading Commission that customer segregated funds at MF Global have a $633 million shortfall, or about 11.6% of a segregated fund requirement of about $5.4 billion. Bloomberg Businessweek (11/3), Reuters (11/2)
CME Group is in spotlight in wake of MF Global collapse: CME Group, the self-regulatory organization for MF Global and other futures brokers, is facing scrutiny because of missing customer funds at the collapsed brokerage. CME says an audit last week of MF Global's segregated customer funds found them in compliance. "It now appears that the firm made subsequent transfers of customer segregated funds in a manner that may have been designed to avoid detection insofar as MF Global did not disclose or report such transfers to the CFTC or CME until early morning on Monday October 31 2011," CME said. Thomson Reuters/News & Insight blog (11/2), Financial Times (tiered subscription model) (11/2)
ICE is in solid position in regard to MF Global, Sprecher says: Jeff Sprecher, CEO and chairman at IntercontinentalExchange, says the derivatives market operator is "in full possession" of the customer funds of MF Global Holdings tied to trading on its markets. "We feel we're in an extremely solid position with regard to managing their default," Sprecher said. The Wall Street Journal (tiered subscription model) (11/2), Financial Times (tiered subscription model) (11/2)
Regulators ramp up focus on MF Global: The Securities and Exchange Commission is investigating whether MF Global Holdings and CEO Jon Corzine made misleading comments about the investment that caused the company's collapse, sources said. Regulators are increasing their focus on the firm, which filed for bankruptcy this week, but they also are facing scrutiny about their roles. However, they had been voicing concerns about MF Global for months. The Wall Street Journal (tiered subscription model) (11/3), The New York Times (tiered subscription model)/DealBook blog (11/2), Reuters (11/2)
November 2, 2011
FBI and CFTC reportedly will examine MF Global's collapse The FBI plans to investigate whether MF Global Holdings lost client funds, sources said, while the Commodity Futures Trading Commission intends to subpoena the firm. The moves reportedly were prompted by a discrepancy in MF Global's books. Kenneth Ziman, an attorney for MF Global Holdings, told U.S. Bankruptcy Judge Martin Glenn that the brokerage believes it has accounted for all of its clients' funds. "To the best knowledge of management, there is no shortfall," Ziman said, adding that most of the company's assets are held at its brokerage division. The Wall Street Journal (tiered subscription model) (11/2), Bloomberg Businessweek (11/2)
Firms scramble to cope with their exposure to MF Global Exchanges, clearing firms, futures commission merchants and other futures markets participants raced to deal with fallout from the collapse of MF Global Holdings. Floor and electronic traders who use MF Global to clear their trades had their accounts frozen, putting a damper on liquidity and trading. E-Trade Financial moved its business to R.J. O'Brien, while Charles Schwab Corp. is bringing its futures clients in-house. Crain's Chicago Business (11/2), Reuters (11/2), Bloomberg (11/1)
MF Global violated CME and CFTC rules, Donohue says CME Group CEO Craig Donohue said MF Global Holdings, which filed for bankruptcy protection, was noncompliant with collateral rules of the exchange and the Commodity Futures Trading Commission. Financial Times (tiered subscription model) (11/1), Bloomberg (11/1)
MF Global collapse casts a shadow over Corzine's legacy Jon Corzine, formerly of Goldman Sachs, joined MF Global in 2010 in a move that took many by surprise. On Monday, MF Global collapsed under the weight of a large investment in European sovereign bonds. Corzine had defended the investment as not particularly risky, but that didn't keep clients, ratings agencies and investors from losing confidence in the brokerage. The New York Times (tiered subscription model)/DealBook blog (11/1)
BTR Trading Group Client Resources | MF Global Bankruptcy Resources
Below please find links which search the linked media outlet for the latest news on MF Global. A chronological roll of relevant news through the bankruptcy may also be found below.
Segregation of customer funds is key, CFTC's Gensler says Gary Gensler, chairman of the Commodity Futures Trading Commission, emphasized that segregation of customer funds remains at the heart of market regulation. Gensler's comments come amid claims that MF Global Holdings failed to adhere to the practice. He said he is aiming to get the CFTC to vote on Dec. 5 on a rule that would govern how firms invest customer funds. "It is critical that the CFTC finish a rule that will enhance customer protections regarding where clearinghouses and futures commission merchants can invest customer funds," Gensler said. The Wall Street Journal (tiered subscription model) (11/16), Financial Times (tiered subscription model) (11/16), MarketWatch (11/16)
Giddens files to release more MF Global client cash James Giddens, the trustee overseeing MF Global's bankruptcy, has filed to release about $520 million to the brokerage's commodity customers. The cash has been tied up for more than two weeks. Traders have been trying to gain access to their funds, so the move, which must be approved by the bankruptcy court, would provide some relief. Reuters (11/16)
CFTC closes in on missing MF Global funds, Chilton says The Commodity Futures Trading Commission continues to look for the estimated $600 million in missing MF Global customer funds. "We're closer than when we first went in there," said Bart Chilton, a Democratic member of the CFTC. "The money is not where it should be. I think something nefarious has happened, potentially something illegal." Reuters (11/15)
November 12, 2011
CME offers to help MF Global customers recover their money CME Group has offered $300 million to help MF Global clients in an effort to contain damage from the brokerage's collapse. "We believe this extraordinary measure is necessary to ensure that all customers are treated fairly during the unique and challenging circumstances surrounding the failure of MF Global," said Craig Donohue, chief executive at CME. Meanwhile, MF Global's bankruptcy has caused investors to question whether their money is safe at rival brokerages. Financial Times (tiered subscription model) (11/11), Chicago Tribune (11/12), The Wall Street Journal (tiered subscription model) (11/12), Reuters (11/12)
SEC takes aim at fund industry's use of derivatives The Securities and Exchange Commission is considering disclosure requirements and restrictions on the fund industry's use of derivatives. State Street Global Advisors, BlackRock and other investment companies defend their use of derivatives in letters submitted to the SEC. "Any set of mechanical rules cannot take account of the diversity of derivatives and the multiplicity of ways they may be used by portfolio managers," wrote Joanne Medero and Ira Shapiro, managing directors at BlackRock. "Used appropriately, derivatives can be effective tools in seeking to achieve returns and control risks in funds." The Wall Street Journal (tiered subscription model) (11/12), Bloomberg (11/10)
CNBC on MF Global asset freeze (video will not be visible to IOS devices):
November 10, 2011
MF Global trustee says inquiry is needed before collateral distribution James Giddens, the trustee handling MF Global Holdings' liquidation, said an investigation into any shortfall at the collapsed brokerage is necessary before he can distribute any more collateral to commodity customers. "The law requires that all commodities customers be treated fairly, and on a pro rata basis," according to his website. "While we have received many requests for individual transfers, we must treat all customers equally and fairly, and do not have authority to make such transfers." Bloomberg (11/10)
MF Global collapse prompts review of other brokers The Commodity Futures Trading Commission, after the collapse of MF Global Holdings, said it would review similar futures brokers to make sure they are segregating customer deposits from their own funds. Financial Times (tiered subscription model) (11/10)
Administrator questions MF Global Australia client claims Chris Campbell, a partner at Deloitte, and joint administrator for MF Global Australia, said some clients have made claims that are much higher than the brokerage says it owes them. "If clients continue to do that, there will be a shortfall in the full funds of those claims that are valid, because there's a finite amount of cash that needs to be split between them all," Campbell said. The Sydney Morning Herald (Australia)/Australian Associated Press (11/11)
MF Global sold European sovereign debt before collapse: MF Global Holdings sold more than 20% of its European sovereign-debt holdings at a loss in the days before it filed for bankruptcy, a source said. The sales followed MF Global's quarterly loss announcement. The company's remaining $4.8 billion in sovereign bonds were turned over to its bankruptcy administrator in Britain, KPMG, according to the source. The Wall Street Journal (tiered subscription model) (11/9)
Transfer of MF Global commodities accounts is nearly done: Kent Jarrell, a spokesman for MF Global Holdings trustee James Giddens, said many of the firm's customer accounts are "out of date, inactive, or very small," reducing the number that must be transferred. "It really comes down to about 50,000 commodity accounts, and maybe 400 securities accounts," Jarrell wrote in an e-mail. Once the accounts are transferred, the new brokers will send information to the customers, Jarrell said. Bloomberg (11/9)
Relief might be premature for clients who withdrew from MF Global: Koch Industries and other former customers of MF Global Holdings withdrew billions of dollars out of their accounts at the brokerage in the weeks and months leading up to its collapse. Those customers have likely breathed a sigh of relief, but it might be premature as they face the threat of clawbacks. Reuters (11/10)
Schapiro says MF Global's collapse wasn't a regulatory failure Securities and Exchange Commission Chairman Mary Schapiro told PBS' "Nightly Business Report" that the collapse of MF Global was the company's fault, not that of regulators. "MF Global's failure is a result of MF Global decisions, investment decisions, bad decisions and not the result of regulatory failure in my view," Schapiro said. PBS (11/7)
Search continues for missing MF Global customer funds, Gensler says: Gary Gensler, chairman of the Commodity Futures Trading Commission, said the search for more than $630 million in missing MF Global customer funds continues as his agency investigates the brokerage's collapse. Gensler also warned that Wall Street needs to ensure the protection of client assets. "The most troubling aspect about the MF Global situation is the shortfall of customer money at the firm," Gensler was to say, according to prepared testimony. "Segregation of customer funds is the core foundation of customer protection in the commodity futures and swaps markets." Those with assets tied to MF Global are trying to regain access to money in MF Global accounts. A bankruptcy trustee has ordered the release of some assets to clearing firms, but investors say confusion reigns. The New York Times (tiered subscription model)/DealBook blog (11/3), The Wall Street Journal (tiered subscription model)/Dow Jones Newswires (11/3)
Clearing firms divvy up MF Global's clients: Several clearing firms are filling a vacuum left by the collapse of MF Global Holdings by dividing up clients of the company's U.S. brokerage. CME Group is leading the process of vetting MF Global account holders. The Wall Street Journal (tiered subscription model) (11/3)
November 2, 2011
Bankruptcy judge approves MF Global account-transfer plan James Giddens, the trustee picked to liquidate MF Global's broker-dealer and futures commission merchant unit, has been granted permission to transfer thousands of customer accounts out of MF Global to other clearing firms. James Kobak, an attorney for Giddens, said the accounts will transfer with 60% collateral. The remaining 40% will be left with the clearing organization. CME Group named six firms to receive bulk transfers: ABN Amro Chicago Clearing, ADM Investor Services, Dorman Trading, FCStone, R.J. O'Brien and Rosenthal Collins Group. In related news, CME Group informed the Commodity Futures Trading Commission that customer segregated funds at MF Global have a $633 million shortfall, or about 11.6% of a segregated fund requirement of about $5.4 billion. Bloomberg Businessweek (11/3), Reuters (11/2)
CME Group is in spotlight in wake of MF Global collapse: CME Group, the self-regulatory organization for MF Global and other futures brokers, is facing scrutiny because of missing customer funds at the collapsed brokerage. CME says an audit last week of MF Global's segregated customer funds found them in compliance. "It now appears that the firm made subsequent transfers of customer segregated funds in a manner that may have been designed to avoid detection insofar as MF Global did not disclose or report such transfers to the CFTC or CME until early morning on Monday October 31 2011," CME said. Thomson Reuters/News & Insight blog (11/2), Financial Times (tiered subscription model) (11/2)
ICE is in solid position in regard to MF Global, Sprecher says: Jeff Sprecher, CEO and chairman at IntercontinentalExchange, says the derivatives market operator is "in full possession" of the customer funds of MF Global Holdings tied to trading on its markets. "We feel we're in an extremely solid position with regard to managing their default," Sprecher said. The Wall Street Journal (tiered subscription model) (11/2), Financial Times (tiered subscription model) (11/2)
Regulators ramp up focus on MF Global: The Securities and Exchange Commission is investigating whether MF Global Holdings and CEO Jon Corzine made misleading comments about the investment that caused the company's collapse, sources said. Regulators are increasing their focus on the firm, which filed for bankruptcy this week, but they also are facing scrutiny about their roles. However, they had been voicing concerns about MF Global for months. The Wall Street Journal (tiered subscription model) (11/3), The New York Times (tiered subscription model)/DealBook blog (11/2), Reuters (11/2)
November 2, 2011
FBI and CFTC reportedly will examine MF Global's collapse The FBI plans to investigate whether MF Global Holdings lost client funds, sources said, while the Commodity Futures Trading Commission intends to subpoena the firm. The moves reportedly were prompted by a discrepancy in MF Global's books. Kenneth Ziman, an attorney for MF Global Holdings, told U.S. Bankruptcy Judge Martin Glenn that the brokerage believes it has accounted for all of its clients' funds. "To the best knowledge of management, there is no shortfall," Ziman said, adding that most of the company's assets are held at its brokerage division. The Wall Street Journal (tiered subscription model) (11/2), Bloomberg Businessweek (11/2)
Firms scramble to cope with their exposure to MF Global Exchanges, clearing firms, futures commission merchants and other futures markets participants raced to deal with fallout from the collapse of MF Global Holdings. Floor and electronic traders who use MF Global to clear their trades had their accounts frozen, putting a damper on liquidity and trading. E-Trade Financial moved its business to R.J. O'Brien, while Charles Schwab Corp. is bringing its futures clients in-house. Crain's Chicago Business (11/2), Reuters (11/2), Bloomberg (11/1)
MF Global violated CME and CFTC rules, Donohue says CME Group CEO Craig Donohue said MF Global Holdings, which filed for bankruptcy protection, was noncompliant with collateral rules of the exchange and the Commodity Futures Trading Commission. Financial Times (tiered subscription model) (11/1), Bloomberg (11/1)
MF Global collapse casts a shadow over Corzine's legacy Jon Corzine, formerly of Goldman Sachs, joined MF Global in 2010 in a move that took many by surprise. On Monday, MF Global collapsed under the weight of a large investment in European sovereign bonds. Corzine had defended the investment as not particularly risky, but that didn't keep clients, ratings agencies and investors from losing confidence in the brokerage. The New York Times (tiered subscription model)/DealBook blog (11/1)
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