On Friday, December 9, 2011 the U.S. Bankruptcy Court approved a petition by the SIPC Trustee for a bulk transfer and distribution of up to $2.1 billion to former MF Global Inc. commodities customers. The intent of this third distribution is to restore 72% of US segregated customer property to all commodities customers on a pro rata basis. As such, many US segregated customers who have already taken part in one of the first two interim distributions or have yet to receive a distribution may be entitled to receive further funds. The distribution for each account will be calculated based…...

To Our CME Group Trading Community, Tuesday December 13th, Terry delivered testimony as part of the Senate Committee on Agriculture, Nutrition and Forestry’s hearing on the failure of MF Global. We continue to share with the Congress that MF Global has put market users in a tragic position, as transfers of customer funds made by MF Global for the benefit of that firm are very serious violations of the Commodity Exchange Act, CFTC regulations and CME Group rules. These violations – not inadequate regulation – caused tremendous harm to our customers and our markets. We also continue to advocate for…...

On Friday 12/9/11, Judge Glenn approved a large, third bulk distribution to MF Global customers that will get all customers to the point where they will each have gotten back roughly 72% of the value of their assets in domestic futures accounts. Included in the 72% calculation will be US and foreign currency that was held in domestic accounts, T-Bills, warehouse receipts and physical commodities. Futures contracts will be valued as of their transfer or liquidation price, so that any gains or losses after 10/31/11 will be reflected in the calculation. What will not be included are any amounts held…...

Dear NIBA Members – Welcome to the MF Global Update on the NIBA website. The purpose of the Update is to provide accurate, current information about all aspects of the MF Global failure and bankruptcy which directly affect our members. Here are a few actions the NIBA has already taken in your behalf: Filed our “Release the Seg Funds” Petition in the bankruptcy court. The Petition included approximately 700 signatures collected online in about 48 hours. Our Petition continues to be one of the items by which the court was most impressed. Engaged representation to file our Petition in person…...

December 9, 2011 To Our CME Group Trading Community, Today the Bankruptcy Court approved the MF Global Trustee’s motion to make a third interim distribution of MF Global customer funds. This distribution, which is expected to begin next week, enables the Trustee to distribute 72 percent of customer funds previously frozen, including trapped account balances, dishonored checks, and distributions with respect to warehouse receipts and other customer property at MF Global. While the bankruptcy process does not move as fast as any of us would like, it is important to note that this process stands in stark contrast to the…...

To Our CME Group Trading Community, Yesterday, Terry delivered testimony as part of the House Committee on Agriculture’s examination of the MF Global bankruptcy. As you are a valued member of the CME Group trading community, we want to provide additional context around the statement that Terry delivered. The full testimony can be accessed online. As you know first-hand, MF Global has put market users in a tragic position. The impact of MF Global’s misconduct is significant for farmers, ranchers, grain cooperatives, miners and other commodity consumers, producers and end-users who use commodity price hedging as an integral part of…...

Over the past few weeks, National Futures Association (NFA) has been assessing how our member firms have been impacted by the MF Global Inc. bankruptcy. While NFA was not the designated self regulatory organization (DSRO) for MF Global, Inc., we have been in contact with all of our Members that had accounts with MF Global, Inc., including introducing brokers (“IB”). NFA staff is working closely with its Member firms to assess their specific situations and address their needs as best as possible. For example, when accounts were transferred out of MF Global, Inc., NFA responded to many requests from IBs…...

Dear Members – The past three weeks have been the most frustrating, the most confusing, the most disappointing weeks I’ve spent in the 35 years I’ve been in the futures industry. Many NIBA members are suffering financial hardships due to MF Global’s failure and bankruptcy, and the process for recovery appears to be lengthy. The NIBA has received hundreds of phone and email messages both from members who are directly affected, and from those who are not. Here’s what we’ve done so far in your behalf: Submitted a Petition which included 700 signatures collected online in about 72 hours directly…...

Many of our NIBA members have been hard hit by the MF Global debacle. Understandably, emotions are raw, frustration is high and there is widespread financial hardship. While clearly there are no instant solutions to this mess, we write to let you know what NIBA has been doing on your behalf, and what you can do. The road ahead is a potentially long, but at this juncture the immediate need is the release by the bankruptcy trustee of additional segregated funds owned by clients to not only maintain existing trading positions, but necessary for trading at all. Although the CME…...

Dear All, The MF Global debacle has brought to light a misunderstanding of the structure and guarantees within our industry. We are finding larger members of our community who choose to violate a code of ethics that we have observed for generations. Our industry has prided itself on the fact that no customer has lost funds held in a customer segregated account due to the financial failure of an FCM. This has been due to the cooperation of the futures exchanges, clearing houses, and the clearing members of the exchange clearing houses. It has not been due to any clearing…...