CME Advisory on MF Global
Clearing Member Firms
FROM: CME Clearing
DATE: December 15, 2011
RE: Final information regarding the third interim distribution of customer funds to clients of
MF Global Inc
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 on the Net Liquidating Value on the day prior to transfer.
CME Clearing is assisting in this third interim transfer which will be administered in the same
manner as in the previous interim distributions. That is to say, a number of clearing firms have
agreed to accept the accounts of former MF Global customers and allow them the opportunity to
trade, or simply access their funds. Clients are asked to email CME Clearing at the following
address to attain information about the clearing firm administering their accounts:
CME Clearing will begin facilitating the distribution of funds to each clearing firm on Thursday,
December 15. These firms will undertake the significant administrative task of opening individual
client accounts and facilitating trading access or funds dispersal to affected customers. Due to the
reconciliation effort involved by receiving firms, customers are asked for patience in dealing with
account requests. Firms are expected to release funds to customers by Wednesday, December 21.
This notice sets out further details about the third interim distributions of which clearings firms and
clients should be aware.
• The distribution takes into account cash and the haircut value of securities held in US
segregated accounts. Non-cash assets may be subject to transformation to cash by the
Trustee. Any amounts held in non-USD balances will be converted to USD by the Trustee
and be accessible from receiving firms in USD only.• Since assets held in secured accounts are subject to consultation with foreign insolvency
practitioners, they are generally not included in this distribution. However, any identified
debit balances remaining in customer accounts at MF Global, including 30.7 customer
secured accounts or delivery accounts, will reduce the gross amount on which the customer
segregated account distribution is calculated.
• The Trustee has informed CME that, in determining the net liquidating value for affected
client accounts, dishonored checks have been added back into the gross amount on which
the customer segregated account distribution is calculated.
• In general, warehouse receipts and shipping certificates are being taken into account by the
Trustee for this third interim distribution. Individual account circumstances will be taken into
account in determining the disposition of warehouse receipts and/or shipping certificates in
the third distribution. Additional information will be forthcoming next week.
• Only clients of MF Global Inc. are eligible to take part in this distribution. Clients of non-US
affiliates of MF Global are requested to turn to the administrators of the relevant jurisdiction
for further information about their accounts.