MF Global Client Information Update
This circular is intended to provide information to customers of
IntercontinentalExchange (ICE), including ICE Futures Europe and ICE Clear
Europe, who were clients of MF Global UK Ltd or one of its affiliates (“MF
Global”). ICE requests that its participants, exchange members and clearing
members pass this circular on to any of their customers who dealt with or
through MF Global. In addition, your attention is drawn to the Disclaimer at the
end of this Circular.
MF Global conducted its business through a number of subsidiaries worldwide,
including MF Global Inc., MF Global UK Ltd, MF Global Singapore Pte. Limited,
MF Global Hong Kong Ltd, MF Global Australia Limited and MF Global Canada
Co. The claims process for customers in MF Global administration, insolvency
and bankruptcy proceedings will vary depending on which MF Global subsidiary
was contracted with. For all contracts cleared by ICE Clear Europe, the
relevant clearing member was MF Global UK Ltd. Users of ICE which are not
clients of MF Global UK Ltd (but of another MF Global entity) will have been
clearing through MF Global UK Ltd pursuant to back-to-back arrangements
established between MF Global UK Ltd and the relevant MF Global affiliate.
Next steps
This circular sets out suggestions for how customers who believe that they are
customers of MF Global should proceed in dealing with the appropriate
administrators and liquidators and making appropriate claims.
CIRCULAR
C11/181
15 December 2011
Category:
General
Attachments:
None
Summary of content:
MF Global Client
Information Update
For more information
please contact:
Step One
Customers should determine which MF Global entity they contracted with, and
its jurisdiction. The legal name of their MF Global broker will normally be
included in the account opening documentation and applicable terms and
conditions and/or relevant statements. Clients who are unsure as to which entity
they contracted with should seek appropriate legal advice.
Paul Swann
President and Chief
Operating Officer
Step Two
Below, for each relevant MF Global affiliate, we have set out information about
the applicable insolvency proceedings, links to relevant information on the MF
Global or insolvency practitioner websites and a summary of key forthcoming
deadlines and forms that should be submitted by customers who wish to have
their property returned.
+44(0) 20 7065 7738
+44(0) 20 7065 7615
paul.swann@theice.com
Patrick Davis
Head of Legal
patrick.davis@theice.com
MF Global UK Ltd
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP have been
appointed as the Joint Special Administrators of MF Global UK Limited,
pursuant to the UK's Investment Bank Special Administration Regulations 2011.
The Joint Special Administrators have recently made available forms for both
clients and creditors to make claims. Direct clients of MF Global UK Ltd should
complete such a form if they wish to realise any claim. Clients that were
intermediated through MF Global, Inc., MF Global Singapore Pte. Limited, MF
Global Hong Kong Ltd, MF Global Australia Limited should seek their own legal
advice on whether they are entitled to submit a claim, whether they should
instead requisition the relevant insolvency practitioner of their MF Global affiliate
to do so on their behalf, or take any other step. The UK claim forms are
available on this website:
ICE Clear Europe Ltd, a Recognised Clearing House
under the Financial Services & Markets Act 2000
ICE Clear Europe Circular C11/181
Registered in England & Wales with Registered Office at
Milton Gate, 60 Chiswell Street, London, EC1Y 4SA
Company Registration No. 6219884
1
http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Pages/MFGlobal-Client-Creditor-claims-forms.aspx
Key forthcoming dates are currently stated as follows:
On or around 15 December 2011: details of administrators' proposals will be
published
12 noon on 6 January 2012: deadline for submitting forms to enable creditors to
register to vote in the initial creditors’ meeting on the Special Administrators’
proposal.
9 January 2012: creditors' meeting.
30 March 2012: deadline for client money claim forms to be submitted.
The Special Administrators have said that they will be looking to make an
interim distribution of client monies within this process but it is not currently
possible for them to provide a date for this.
Definitive information and updates are available on the KPMG website:
http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Pages/mfgl
obaluk.aspx
Protected customers of MF Global UK Limited can expect to receive an
application form to make a claim for compensation from the Financial Services
Compensation Scheme in the coming weeks.
To read the full update, please visit www.fscs.org.uk .
MF Global Inc.
James W. Giddens has been appointed Trustee of the liquidation of MF Global
Inc.
The U.S. bankruptcy court presiding over the liquidation proceeding recently
approved a process by which customers (as well as general unsecured
creditors) of MF Global Inc. may submit claims. Any customer (or creditor) of
MF Global Inc. seeking any recovery from the liquidation estate (including on
account of margin held at ICE Clear Europe) should follow the claims
submission procedure as described by the Trustee (which description appears
in the link provided below). Customers may also wish to consider whether they
should take any steps in respect of the MF Global UK Ltd administration (see
above).
The U.S. claims forms (and instructions on how to complete the claims forms)
are available on the following website: www.mfglobaltrustee.com
Please consult with your legal counsel regarding the proper ‘account type’ to
designate on your claim form with respect to funds related to ICE OTC swap
positions and futures contracts traded on ICE Futures Europe held in your
account at MF Global Inc. Based upon information filed by the Trustee, it is our
understanding that these positions and related funds were held in the “foreign
futures” account type but it is important that you confirm this through your
account documentation. You should therefore REVIEW YOUR MF GLOBAL
INC. ACCOUNT STATEMENTS FOR THIS INFORMATION AND CONSULT
WITH YOUR LEGAL COUNSEL REGARDING COMPLETION OF THE
CLAIMS FORM.
ICE Clear Europe Ltd, a Recognised Clearing House
under the Financial Services & Markets Act 2000
ICE Clear Europe Circular C11/181
Registered in England & Wales with Registered Office at
Milton Gate, 60 Chiswell Street, London, EC1Y 4SA
Company Registration No. 6219884
2
Key forthcoming dates are currently stated as follows:
31 January 2012: Deadline for submissions of completed customer claim forms
(either manually or electronically) to the Trustee.
2 June 2012: Deadline for submission of claim forms for non-customer claims to
the Trustee.
MF Global Singapore Pte. Limited
Bob Yap Cheng Ghee, Peter Chay Fook Yuen and Roger Tay Puay Cheng of
KPMG have been appointed as Provisional Liquidators of MF Global Singapore
Pte. Limited pursuant to Singapore's Securities and Futures Act and its related
regulations.
Customer wishing to claim in the liquidation proceedings should complete a
withdrawal form:
http://www.mfglobal.com.sg/en/downloads/Withdrawal%20Form.pdf
Definitive information and updates for customers is available on the MF Global
Singapore website:
http://www.mfglobal.com.sg/en/index.html
http://www.mfglobal.com.sg/en/downloads/FAQs%20for%20Customers%20(21
%20Nov%202011).pdf
Customers should also consider whether they need to take any step in respect
of the MF Global UK Ltd administration (see above). Please note that any
claims of customers of MF Global Singapore Pte. Limited in respect of margin
held at ICE Clear Europe will need to involve MF Global Singapore Pte. Limited
or its customer claiming in the client money/asset pool or administration
proceedings related to MF Global UK Ltd.
MF Global Hong Kong Ltd
Patrick Cowley, Fergal Power and Lui Yee Man, Rosalie have been appointed
as Joint and Several Provisional Liquidators by the High Court of Hong Kong in
respect of MF Global Holdings Hong Kong Ltd and MF Global Hong Kong Ltd.
Customers wishing to claim in the liquidation proceedings should complete a
withdrawal form:
http://www.kpmg.com/cn/en/PressRoom/Pages/statement-20111209-MFGlobal.aspx
A key forthcoming date is currently stated as follows:
16 December 2011: Deadline for submitting claim forms.
Definitive information and updates is available on the MF Global Hong Kong
website: http://www.mfglobal.com.hk/main.aspx
Customers should also consider whether they need to take any step in respect
of the MF Global UK Ltd administration (see above). Please note that any
claims of customers of MF Global Hong Kong Ltd in respect of margin held at
ICE Clear Europe will need to involve MF Global Hong Kong Ltd or its customer
claiming in the client money/asset pool or administration proceedings related to
MF Global UK Ltd.
ICE Clear Europe Ltd, a Recognised Clearing House
under the Financial Services & Markets Act 2000
ICE Clear Europe Circular C11/181
Registered in England & Wales with Registered Office at
Milton Gate, 60 Chiswell Street, London, EC1Y 4SA
Company Registration No. 6219884
3
MF Global Australia Limited
Christopher Robert Campbell, David John Frank Lombe, and Vaughan Neil
Strawbridge of accountancy firm Deloitte have been appointed Joint & Several
Administrators pursuant to Section 436A of Australia's Corporations Act 2001,
in respect of the Voluntary Administration of each of MF Global Australia
Limited, MF Global Securities Australia Limited and BrokerOne Pty Limited.
The following 'best case' timeline has been published:
December 2011 to early January 2012: Complete calculations of clients’ close
out positions as at 1 November 2011 using all available close out information
from third parties. For those positions where information is not available
estimates will be made and remain subject to receiving close out information.
December 2011 to January 2012: Prepare applications for Court on legal
questions to be considered
January to February 2012: Commence claims proving procedure for clients to
provide details of monies owed
March to April 2012: Close claims proving procedure, or amend depending on
Court decisions
March to April 2012: Attempt first distribution of funds depending on Court
directions
Definitive information and updates is available on the Deloitte website:
http://www.deloitte.com/au/mfglobal
Customers should also consider whether they need to take any step in respect
of the MF Global UK Ltd administration (see above). Please note that any
claims of customers of MF Global Australia Limited in respect of margin held at
ICE Clear Europe will need to involve MF Global Australia Limited or its
customer claiming in the client money/asset pool or administration proceedings
related to MF Global UK Ltd.
Please ensure that the appropriate members of staff within your organization
are advised of the content of this Circular. Should you have any questions in
relation to this Circular or require any further information, please contact Patrick
David, Head of Legal by phone on +44 (0) 20 7065 7752 or by email on
patrick.davis@theice.com.
Disclaimer
This update and guide is intended to alert customers to certain processes and
provide customers of ICE with information that they may find to be helpful.
Although ICE has sought to ensure accuracy, this circular does not constitute
legal advice and neither ICE nor any of its affiliates assumes any liability to any
client of any MF Global entity should it prove to be inaccurate, incomplete or
misleading or more generally should they fail to achieve full recovery in any
administration, insolvency, customer property, client money, client assets or
related proceedings. ICE undertakes no responsibility to update the information
or any links in this circular.
ICE Clear Europe Ltd, a Recognised Clearing House
under the Financial Services & Markets Act 2000
ICE Clear Europe Circular C11/181
Registered in England & Wales with Registered Office at
Milton Gate, 60 Chiswell Street, London, EC1Y 4SA
Company Registration No. 6219884
4
Signed:
Paul Swann
President & Chief Operating Officer
ICE Clear Europe Ltd, a Recognised Clearing House
under the Financial Services & Markets Act 2000
ICE Clear Europe Circular C11/181
Registered in England & Wales with Registered Office at
Milton Gate, 60 Chiswell Street, London, EC1Y 4SA
Company Registration No. 6219884
5