Trustee Report Apparently Indicates Trustee Close to Recovering Sufficient Assets to Make Non-Insider Customers Whole if CFTC Rules Upheld

On June 4, 2012, the MF Global Inc. (“MFGI”) trustee released his first six month report on the SIPA liquidation of MFGI. In the report, the trustee detailed recoveries the trustee has already achieved and also prospective recoveries on behalf of both MFGI’s proprietary accounts and the segregated asset pools for MFGI’s former customers. A CFTC rule provides that in the event of shortfall an FCM’s firm assets go to make up the shortfall, this would mean that MFGI’s proprietary assets would be allocated to make up any extant shortfalls in the segregated asset pools of MFGI’s former customers. Creditors…

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