China

Statement from the Provisional Liquidators of MF Global Holdings HK Limited ("MFGH") - CFD Clients of MF Global Holdings HK Limited 

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

 

Contract for differences ("CFD")

 

Contractual relationships between CFD clients and MFGH:

 

Based on the PLs' review of the available records, we understand that clients of MF Global in Hong Kong purchased CFD through their CFD trading accounts with MFGH (as opposed to MF Global Hong Kong Limited). MFGH then purchased equivalent positions from MF Global Australia Limited ("MFGA") on a principal to principal basis, under a master agreement between MFGH and MFGA.

 

MFGH was not a regulated entity in Hong Kong, and operated on the basis that CFD trading was not a regulated business. Due to the fact that CFD trading was performed by MFGH with MFGA and occurred on a principal to principal basis, the PLs understand that funds provided to MFGH by CFD clients were not segregated. Based on our current understanding, the effect of this is that CFD clients will need to claim as ordinary creditors in the liquidation. Should this position change for any reason, we will advise the CFD clients accordingly.

 

CFD related funds:

 

As of today, 23 December 2011, the PLs understand that funds received from clients in relation to CFD trading activities are currently held in Hong Kong and Australia.

 

The PLs have submitted a claim, and are liaising with the Administrators of MFGA in relation to the recovery of the funds held by MFGA on behalf of MFGH. Upon recovery of MFGH funds held by MFGA, these funds will form part of the general estate, for the benefit of all creditors, including CFD clients.

 

Claims against MFGH:

 

Clients with claims against MFGH can complete and submit a 'proof of debt' claim form, which will be available on MF Global Hong Kong's website from Wednesday 28 December - please use the following link: www.MFglobal.com.hk to obtain a form.

 

Great care should be taken to fill up the claim form correctly, and to provide all relevant supporting information. However, please note that these claims will be dealt with by the Liquidators, if Liquidators are subsequently appointed by the Court.

 

Please submit the claim form by email to MFGHKclaims@kpmg.com or by registered post to the Provisional Liquidators, c/o KPMG, 8th Floor, Prince's Building, 10 Chater Road, Central, Hong Kong.

 

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

 

 

Yours faithfully

For and on behalf of MF Global Hong Kong Limited

 

Patrick Cowley

Joint and Several Provisional Liquidator

 

(The Joint and Several Provisional Liquidators act as agents of MFG-HK without personal liability)