According to Bloomberg the trustee liquidating broker- dealer MF Global Inc. asked a judge to let him transfer about $520 million in collateral to commodity customers whose accounts consisted solely of cash on Oct. 31, when the parent company filed for bankruptcy.
The 21,000 customers would receive 60 percent of the $869 million in their accounts, the trustee, James Giddens, said in a court filing yesterday. He said the distribution is possible because CME Group Inc., which runs the world’s largest futures exchange, is providing $250 million in financial guarantees and $50 million in assets to allow the release of more collateral.
“The inability of MF Global customers as a whole to access their funds has affected trading in futures markets, and has shaken public confidence in our customer protection regime,” Scott D. O’Malia, a commissioner of the Commodity Futures Trading Commission, said in comments posted on the CFTC web site today. The move to transfer more collateral should have happened sooner, he said….
http://www.bloomberg.com/news/2011-11-16/mf-global-brokerage-trustee-asks-to-return-520-million-in-customer-money.html
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