What has happened to MF Global?
Richard Fleming, Richard Heis and Mike Pink were appointed Joint Special Administrators of MF Global UK Limited and Joint Administrators of MF Global Services Limited following an application to the High Court in London by the companies’ directors on Monday 31 October 2011.
I have open positions with MF Global – what is happening with these?
The administrators and company staff are working to transfer these where possible. Where exchanges and counterparties have defaulted MF Global UK Limited (in special administration) under their own rules, thereby effectively terminating customers’ positions, we are working closely with them to try to optimise the outcome. We are notifying clients affected by termination events as soon as possible, so they can take appropriate action. These notifications are being communicated through the companies’ normal communication channels, and we are writing to customers as soon as we can. In addition, information regarding which exchanges and clearing houses have closed or terminated trades / positions, and the date on which these were liquidated, is being posted on both www.mfglobal.co.uk and www.kpmg.co.uk. This information will be updated as and when the positions of individual exchanges and clearing houses become clear.
All open client positions relating to foreign exchange (FX) have been or are being closed as of4 November 2011 in accordance with the terms of business governing the agreement between us and the client.
We are not yet able to provide closing information to our clients who have had their positions closed. We are working to obtain the information needed to provide clients with final pricing and net position information and will provide that information as soon as possible.
I have received statement information since the administrators’ appointment. Is this accurate?
As a result of trades/positions being closed or terminated by counterparties of MF Global UK Limited (in special administration), since 31 October 2011, certain trade and/or position, price and cash balance data provided to customers is not necessarily reliable. Accurate closing prices and statements of final trades and/or positions will be sent to clients of MF Global UK Limited (in special administration) in due course.
I requested my account be closed and funds be remitted to me prior to the administrators’ appointment. I was told by Company staff that these requests had been actioned. However, I have not received the funds. What is the position?
It is clear that a large number of requests to close accounts made between Friday 28 October and Monday 31 October were received by the Company but not completed. Notwithstanding that these closure requests were made prior to the administrators’ appointment these accounts fall within the special administration process.
I would like to close my account now and have the funds remitted to me – can this be actioned?
At this point the companies are unable to action requests for withdrawals from client accounts– these are now subject to the special administration process.
My funds were held in a segregated account. Why can’t they be released immediately?
Notwithstanding their segregated status these accounts require to be first reconciled anddealt with as part of the special administration process.
How long will the process to return client monies take?
We are actively working to reconcile holdings and accounts in order to enable assets to be released as soon as practicable, which is one of our formal objectives under the Investment Bank Special Administration Regulations.
Our investigations to date (which remain ongoing) indicate that the majority of client funds were held at institutions outside of the MF Global Group. The ultimate return of client assets though will be dependent on the Special Administrator establishing the size of the claims against the segregated and non-segregated asset pools. These will not be finalised until all client risk positions have been liquidated or transferred and all claims against the pools have been validated.
What is the next stage in the administration process?
Creditors will receive formal correspondence from the administrators in the next 7 days detailing the process for making a claim.
How can I keep up to date with further developments?
Updates are being posted on our website, www.kpmg.co.uk.
