ICE Seeks Court Ruling To Unlock Customer Cash At MF Global
November 10 2011 - 11:56AM
Dow Jones News
IntercontinentalExchange Inc. (ICE) sought a bankruptcy court
ruling Thursday to free up customer cash held on deposit with MF
Global Holdings Ltd. (MF), after some funds began to be returned to
other clients of the collapsed broker-dealer this week.
ICE warned that the still-unfolding process of reuniting MF
Global's derivatives-trading clients with the funds used to back up
their bets has favored some customers over others, and said that
the court's decision on the matter would set a legal precedent.
"We believe this result is inequitable and within the power of
the court to redress," wrote Thomas Hammond, president of ICE's
U.S. clearinghouse, and Thomas Farley, president of ICE's U.S.
futures markets, in the letter.
ICE joined with other exchanges and clearing facilities last
week to arrange a mass exit from MF Global for brokers, hedge funds
and individual investors who had trades open at the time the New
York firm slipped into bankruptcy on Oct. 31. Those clients were
placed with a group of healthy clearing firms.
Customers of MF Global who took trades off the table ahead of
the mass transfer or had only cash in their accounts remain
separated from their funds, however. The trustee supervising the
company's liquidation is expected to require clients to file claims
to retrieve these assets.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117;
jacob.bunge@dowjones.com
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