• Notice of Hold on Collateral Transferred from MF Global, Inc. (MFG)

      • To
      • Clearing Member Firms
      • From
      • CME Clearing
      • #
      • 11-402
      • Notice Date
      • 06 November 2011
      • Effective Date
      • 06 November 2011
    • Notice of “Hold” for Any Accounts Transferred from MF Global, Inc. (“MFG”)

      In order to ensure that all customers are treated fairly, and pursuant to approval granted by the CFTC and the Trustee, CME has directed its clearing members to delay distribution of transferred funds and the proceeds of the liquidation of any transferred positions until the calculation is completed, which is expected by the close of business Tuesday, November 8, 2011. This temporary measure is necessary to ensure that CME Clearing can properly verify that the correct amount of collateral was allocated to each of the customers involved in the bulk transfer of positions from MF Global.

      “New” funds deposited by customers may be freely withdrawn. We will notify firms promptly as customers’ accounts are verified and the hold is lifted. This temporary measure will allow us to ensure all customers are treated fairly as we work with the Trustee. This plan has been discussed with and approved by the CFTC and the Trustee.
      Please note that:
      •     Transferred customers are subject to all clearing firm requirements and policies respecting margin and variation margin.

      •     Customers may trade during the verification process subject to their clearing member’s requirements. 

      For the PDF version of this advisory, please click here.