China

Details

  • Date: 11/11/2011

Statement from the Provisional Liquidators MF Global Hong Kong Limited (Provisional Liquidators Appointed) ("MFG HK") 

This is an update following our notice to clients on 7 November 2011

 

Further update on clients' open positions:

 

Cash equities - all open trades have been settled. Only one failed trade has been identified to date.

 

Futures and Options

 

a) HK Market

 

The open contracts of all of MFG HK's direct clients (with the exception of one MFG Omnibus account operated by overseas MFG affiliate) held at HKFE has been either closed out or transferred in accordance with clients' instructions. The Provisional Liquidators are actively seeking instructions in relation to the Omnibus account. SFC has given us a short extension to deal with these instructions.

 

b) Overseas Markets

 

Transfer and close out instructions received to date for overseas positions have been passed on to our overseas brokers for execution. We understand that a number of receiving brokers are experiencing significant delays in the processing of transfer requests due to the large volume of requests received. Our clearing brokers have advised that they will continue to liaise with the receiving brokers to process transfer requests that they have already received. We will update clients on the status of transfer requests as soon as practicable after confirmation from our overseas brokers. We also suggest clients liaise with their receiving brokers to ascertain reason for delays in accepting the transfer requests and to notify us of issues identified.

 

Where we have not received transfer or close out instructions for the remaining overseas exchanges that are still receiving such instructions, we understand from our overseas brokers that these are likely to be liquidated soon by them or the underlying clearing houses. We will inform affected clients of the impact of such action as soon as we are in a position to do so.

 

For the exchanges listed below, trades and positions of MFG HK have been liquidated, with effect from the corresponding date listed:

 

Exchanges

Date Liquidated

Singapore Exchange

03 November 2011

Sydney Futures Exchange

04 November 2011

New Zealand Futures Exchange

04 November 2011

Eurex Clearing AG

01 November 2011

IDEM / Borsa Italiana (Italian Derivatives Exchange Market)

07 November 2011

London Metal Exchange

08 November 2011

International Petroleum Exchange

07 November 2011

Korea Exchange

01 November 2011

 

Client funds

 

The Provisional Liquidators are in the process of recovering clients' funds located overseas. Specifically, the Provisional Liquidators are currently liaising with the relevant brokers to discuss the reconciliation of client positions/funds and the logistics of the repatriation of funds from overseas to Hong Kong. This process may take some time as a number of brokers, especially MFG affiliates, have advised that they require some time to assess the impact of forced liquidations of the open positions they had with certain exchanges and the allocation thereof to their clients, including MFG HK. The Provisional Liquidators will advise clients further upon the completion of these exercises.

 

Clients of MFG HK are encouraged to contact Ms Jasmine Lai on +852 2913 2539 or email mfglobalhk@kpmg.com should you have any enquires.

 

The Provisional Liquidators will otherwise provide further updates and information in due course.

 

Yours faithfully

For and on behalf of MF Global Hong Kong Limited

 

Patrick Cowley

Joint and Several Provisional Liquidator

(Acting as agents without personal liability)

 

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