Some MF Customers See Frozen Funds Thaw, Others Face Longer Wait
November 09 2011 - 1:39PM
Dow Jones News
Some former customers of MF Global Holdings Ltd. (MFGLQ) saw
frozen funds begin to thaw Wednesday, though others face a longer
wait to access trading collateral locked up in the broker-dealer's
bankruptcy, according to exchange operator CME Group Inc.
(CME).
CME and other derivatives exchanges began early Wednesday
lifting a hold on futures-trading margin parked by customers at MF
Global, after arranging a mass exodus of brokers, hedge funds and
individual investors' trading business out of the failed firm last
Friday.
Those customer accounts that dealt in options, however, must
wait longer as the exchanges, clearinghouses and regulators ensure
that all former MF Global clients are treated fairly and that some
funds remain under control of the trustee overseeing the compay's
liquidation.
The "massive undertaking" of shifting more than 15,000 customer
accounts and the complexity of managing the transfer to other
clearing firms has meant that "the validation of each account's
collateral balance is taking longer than originally anticipated,"
CME officials said in a statement Wednesday.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117;
jacob.bunge@dowjones.com
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