The trustee liquidating the brokerage arm of MF Global Holdings (MFGLQ) on Tuesday sought to release a third wave of customer money that would return funds to clients who have yet to be reunited with their money, and get more back to other customers.

Trustee James Giddens's goal with the third transfer of assets--up to $2.1 billion--is to "true-up" the accounts of all former customers of the collapsed broker-dealer, according to a spokesman for the trustee, after a series of fund transfers earlier this month left some complaining of unfair treatment.

A motion was filed Tuesday to secure court approval for the transfer, which is intended to get all former MF Global customers 66% or more of the money they had on deposit with the firm. Such a move is targeted toward early December and will be the "most complex" of the transfers to date, according to a statement from the trustee.

Not all of the money can be released because of the still-unexplained shortfall in customer money, the trustee has said.

Giddens, in the days immediately following MF Global's Oct. 31 bankruptcy, allowed exchange operators like CME Group Inc. (CME) to shift customers with open trading positions to other derivatives brokerage firms, bringing along about 60% of the $2.5 billion in collateral posted against those trades.

A second transfer sought to do the same thing for customers who held only cash in their MF Global accounts, many of whom closed out trades ahead of the firm's collapse and complained that their money wound up being frozen for a longer period than those customers who kept trades on.

The third transfer would raise up those levels up to 66% or more, and would also bring to the same level customers who received less than that amount of their MF Global-held assets in prior transfers, according to the spokesman. If the transfer is successful, about $4.1 billion in customer assets will be released.

The process also would cover checks sent out by MF Global in its final days before bankruptcy, which bounced when customers attempted to deposit them.

"We've been excluded and I don't think that's fair," said Joe Chiusano, an independent trader who cleared his transactions through an MF Global-affiliated entity and has been out of the market for the past month.

Chiusano, who traded mostly energy commodities, said he attempted to close out his account on Oct. 31 and received a check for his funds that ultimately was not honored.

CME told traders this week that those who received bad checks from MF Global will need to file claims to get their funds back.

-By Jacob Bunge, Dow Jones Newswires; 312 750 4117; jacob.bunge@dowjones.com

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