Friday 11 November 2011

Day 11: the futures clients get $300MM CME guarantees, the rest of us are left behind...

Today the clients of MF Global Inc., the regulated futures subsidiary of MF Global Holdings Ltd, achieved a major breakthrough with the CME providing up to $300 million of financial guarantees to their trustee (who looks exclusively after their interests and not of any other client/creditor of the other MF Global entities), see http://www.forbes.com/sites/steveschaefer/2011/11/11/cme-ponies-up-300-million-to-help-mf-global-trustee-deal-with-mishandling-of-funds/.

It is now clear that we, the clients and creditors of MF GLOBAL FX CLEAR LLC and of other unregulated subsidiaries of the parent company, have neither the support of the exchanges and the regulators afforded to the futures clients nor the muscle and influence of institutions like JPMorgan and BoA who sit in the committee of creditors of MF Global Holdings Ltd.

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