The cases are not comparable. The one is a hedge fund where some customers may have essentially profited from 'insider trading' loosely defined. Nothing to do with MF Global.
Anyone pulling money out of MF Global?
- Thread starter Daal
- Start date
Simply not true. Sentinel was a clearing FCM that had omnibus clearing agreements with other non-clearing FCM 's - meaning that they act as an FCM/broker to other FCM's just like your FCM acts as a broker to you.
Velocity Futures' customer segregated accounts were held with them - hence the VF lawsuit (along with Farr Financial) in the early stages of the game to try to recover client funds, and block their client funds from potentially being sold at a discount.
Regular futures traders that had nothing to do with any hedge fund had money caught up in Sentinel.
This is identical to the situation last week where floor traders who had nothing to do with MF Global found out that they were, in fact, cleared omnibus by MF Global & didn't know it. They believed they had nothing do do with MFG, but the result was that they were barred from trading.
MESSAGE TO COMMODITIES CLAIMANTS OF MFGI
To: Commodities Claimants of MFGI
Date: November 10, 2011
"Shortfall"
Until an investigation into complex cash movements at MF Global is completed by the Department of Justice, the Commodity Futures Trading Commission, the Securities and Exchange Commission, and the Trusteeâs staff in cooperation with the Securities Investor Protection Corporation, we will not know the extent of any deficiency in funds which should have been segregated by MF Global for your benefit. While the investigation is proceeding around the clock we are unable to estimate when it will be complete. The Trusteeâs investigation will be deliberate, thorough, and independent.
Individual transfers
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.
Distributions
MF Global is now in a court supervised liquidation. It has ceased to do business, and it will not reorganize. The law requires that all commodities customers be treated fairly, and on a pro rata basis. Under applicable law, we can only distribute an amount of collateral estimated with the relevant commodities exchanges, the CFTC and SIPC, that will not exceed the contemplated pro rata shares of each commodity customerâs claim to the amount of funds segregated for commodities customers. Thus, we need to determine the amount of all claims before any distribution may be made. We are developing an expedited claims process to accelerate this process and to enable us to make additional distributions as soon as possible. If your pro rata share of the segregated pool produces a deficiency in your claim, you also have a claim as an unsecured creditor against the general assets of MF Global, along with other unsecured creditors.
Inquiries of the Trustee's Staff
The process is being expedited as quickly as possible. While we understand your dismay at MF Globalâs failure, we are and will continue to be responsive to the thousands of inquiries and we will continue to post relevant information when available promptly on this website
This is complete and utter BULLSHIT. The shortfall should still be a secured claim!
To: Commodities Claimants of MFGI
Date: November 10, 2011
"Shortfall"
Until an investigation into complex cash movements at MF Global is completed by the Department of Justice, the Commodity Futures Trading Commission, the Securities and Exchange Commission, and the Trusteeâs staff in cooperation with the Securities Investor Protection Corporation, we will not know the extent of any deficiency in funds which should have been segregated by MF Global for your benefit. While the investigation is proceeding around the clock we are unable to estimate when it will be complete. The Trusteeâs investigation will be deliberate, thorough, and independent.
Individual transfers
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.
Distributions
MF Global is now in a court supervised liquidation. It has ceased to do business, and it will not reorganize. The law requires that all commodities customers be treated fairly, and on a pro rata basis. Under applicable law, we can only distribute an amount of collateral estimated with the relevant commodities exchanges, the CFTC and SIPC, that will not exceed the contemplated pro rata shares of each commodity customerâs claim to the amount of funds segregated for commodities customers. Thus, we need to determine the amount of all claims before any distribution may be made. We are developing an expedited claims process to accelerate this process and to enable us to make additional distributions as soon as possible. If your pro rata share of the segregated pool produces a deficiency in your claim, you also have a claim as an unsecured creditor against the general assets of MF Global, along with other unsecured creditors.
Inquiries of the Trustee's Staff
The process is being expedited as quickly as possible. While we understand your dismay at MF Globalâs failure, we are and will continue to be responsive to the thousands of inquiries and we will continue to post relevant information when available promptly on this website
This is complete and utter BULLSHIT. The shortfall should still be a secured claim!
One box of incendiary rounds should take care of it. Just aim carefully, you may only get one shot.
http://www.youtube.com/watch?v=ItFiUTtU0-o
I agree with the prior post.
It is ridiculous to assert that our claim would be unsecured.
This money was simply stolen and I can't believe that the return of stolen property would not be a priority for the bankruptcy court.
On a brighter note, the ICE seems to be pleading our case for the release of customer cash, at least up to the amount that other traders received as part of the bulk transfer.
Hopefully, the court support their appeal. It is only fair.
It is ridiculous to assert that our claim would be unsecured.
This money was simply stolen and I can't believe that the return of stolen property would not be a priority for the bankruptcy court.
On a brighter note, the ICE seems to be pleading our case for the release of customer cash, at least up to the amount that other traders received as part of the bulk transfer.
Hopefully, the court support their appeal. It is only fair.
That makes scene to me. In my opinion, missing commodity client segregated funds should be replaced from other if available funds recoverable within the MF Global collapse including from all securities held in street name. Security clients are protected by SIPC insurance and commodity clients are protected by segregated accounts.
As I stated earlier I have written a letter to the bankruptcy judge requesting the immediate return of funds via a pro-rata distribution of known assets. Giddens has stated he cannot do this as it would somehow not be fair to clients. In fact by allowing collateral transfers with the bulk position move, Giddens has alread given some clients priority and preferential treatment over others - in my opinion in violation of law.
To voice your displeasure to the judge in written form, he can be contacted at:
The Honorable Martin Glenn
Bankruptcy Judge for the Southern District of New York
One Bowling Green â Room 504
New York, NY 10004-1408
To voice your displeasure to the judge in written form, he can be contacted at:
The Honorable Martin Glenn
Bankruptcy Judge for the Southern District of New York
One Bowling Green â Room 504
New York, NY 10004-1408
LOL. Let us know if he writes back. We can't wait...