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MF Global Updates

MF Global Agrees to Pay Customers 100% to Settle CFTC Suit

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Last week, CFTC and MF Global Inc. agreed to a settlement whereby MF Global Inc. would pay restitution to its former commodity customers to bring them to a 100% return of their accounts. This restitution, which requires judicial approval, would likely involve the trustee sending out checks bringing both 4d domestic futures customers and 30.7 foreign futures customers to 100% toward the end of 2013.

The trustee indicated in a consent order filed on the MF Global Inc. docket that the trustee will wait to receive a payment from the MF Global UK affiliate before requesting court authority to make the 100% restitution payments. The trustee expects to receive that payment from the affiliate around September 10, 2013, and the trustee would then file the request within five days of receiving the payment. The processes of achieving court approval and mailing checks may each then take several months, bringing customer receipt of restitution checks to roughly the end of 2013.



Neal R. Stevens
Schuyler, Roche & Crisham, P.C.
nstevens@SRCattorneys.com
312 565.1045 TEL (CHI) | 212 334.7948 TEL (NYC)
917 301.4744 CEL | 312 565.8300 FAX

Schuyler
Roche
Crisham

attorneys

 

 

The Opinions expressed are the opinions of the author. The opinions, the trading styles, trading information and trading programs are not endorsed by the NIBA, but are the individual opinions, styles, information and programs of the author.

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