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From the trustee website: Looks like the Nov 11th date is still about transferring accounts with positions. Why is it so hard for these folks to just make direct statements about what they are going to be doing? What kind of FCM would be willing to accept a position without supporting...

I think its an open question that all cash accounts will be treated differently in the long run. The bulk transfer of positions was about getting traders access to their positions. Below the surface, I think regulators were concerned about the relative size of MF Global's order flow and it's...

From the WSJ: MF Trustee Exploring Options to Free Customer Cash By JACOB BUNGE MF Global Holdings Ltd. customers who still have cash locked up with the failed broker-dealer "most likely" will need to go through the claims process, though a court-appointed trustee is examining other...

The best thing at this point is to keep a close eye on the trustee's site and the SIPC site. http://www.sipc.org/ http://mfglobaltrustee.com Outbound communication from these two entities is poor to say the least. For now I think the best guidance seems to be the following from the...

MF Global Clients May Be Required to Share Cash, SIPC Head Says Quotes / Excerpts from Stephen Harbeck in a Bloomberg Businesweek article this morning. http://news.businessweek.com/article.asp?documentKey=1376-LUCYMF07SXKX01-3NEFRLKDGHPU7KL7G9FDV4KGNC

The details are lost on me. What would be different if the brokerage arm were declared to be in bankruptcy vs in receivership? Here's what Wiki says: Bankruptcy Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to...

Nice link / site - Thanks for posting it.

Screen Snips from the CFTC website showing MF Global interactions regarding proposed rule changes to 1.25 and 30.7 involving investment of customer segregated funds. These snips don't reveal anything except to suggest that MF Global was probably fishing for clarity over its current state as...

I think the article may be correct that customer funds may have been used to meet margin calls on the corporate position. It's an open question whether this reflected an underlying investment in those positions or that it was a hail mary pass to keep MF Global afloat. The following is from a...

As an FYI, the correct address for SIPC should be: http://sipc.org/ The other URL http://www.sipc.com/ takes you to a mirrored site that does not quite operate correctly. I just got off the phone with SIPC who pointed this out. The person I spoke with also said that at this point the use...

This reality is going to cause most traders to significantly alter their approach to brokerage firms. This is a major damage control issue for all stakeholders on the corporate side of the clearing house / exchange traded derivative business. It also represents an area where additional...

Like you, I'm not a lawyer. But keep in mind that there are two separate bankruptcies in progress here. A bankruptcy of the parent company and a bankruptcy of the brokerage unit. The brokerage was placed into bankruptcy to in part protect existing customer funds. This is why all accounts were...

I received communication from my MF Global broker. It referenced the following web links: Mfglobaltrustee.com SIPC.com There have been significant additions to the trustee website since yesterday. The SIPC website provides access to forms that can be completed on-line, but must be...

I've read a few more headlines in the financial press that contrast MF Global with Lehman and Sentinel. Expecting a release of funds on Wednesday is looking more and more like wishful thinking. One thing is clear if the segregated funds sit around long enough everyone out there besides account...

About the same time that I posted about the RJO notice on the MF client login page (~930 PM last night), I also noted that I could no longer log into my account at RF Global. Kind of makes sense as the account was probably moved (without out funds) to RJO. I spoke with my broker early this...

I guess if you knew you were facing the death penalty it could take some of the fun out of eating other folks lunch. It would make the end game for these folks a bit more like Momammar G. Keep it simple - Do away with the minimum security country club prisons and make 'em do long hard time in...

There is also good chance Morgan was directed to make margin call payments for RF Global using customer segregated funds. If that is the case we'll never see the shortfall (hopefully it remains at ~11%). Corzine was awful quick to exit stage right and hire a white collar crime lawyer. Remember...

I suspect the court appointed SIPC trustee is probably pretty close to understanding the total shortfall in segregated customer funds. That total haircut should be divided across all accounts in proportion (~ 11% haircut). The extra funds on deposit with the exchanges will likely flow back to...

Infolinks for accounts moved to RJO Corp. Per the links - cash is still controlled by the bankrupcy trustee. Positions brought over were delivered with only 75% of margin requirements. www.rjobrien.com/mfgindividuals/ http://www.rjobrien.com/mfglobal/ info call...

It appears that RJ Obrien is picking up a number of MF Global accounts. I found the following note on my MF Global login page. Based on everything we've read in the press - accounts will be distributed across a number of firms, so you may not see this on your page. But I expect all account...