Richard Fleming, Richard Heis and Mike Pink of KPMG LLP, the Joint Special Administrators of MF Global UK Limited, today release their latest administration update, which includes an update on positions closed and client and creditor claims forms received to date.
Ahead of the initial meeting of clients and creditors on 9 January 2012, the Joint Special Administrators have today published their Proposals for achieving the purpose of the special administration. The full document, which is available at www.kpmg.co.uk/mfglobaluk, reiterates KPMG’s commitment to ensure the return of client assets and monies as soon as is reasonably practicable.
Client Positions Update
All but a tiny handful of MF Global UK’s 1.61m open client positions have been closed or transferred since the UK business was placed into administration on Monday 31 October.
This includes the closure or transfer of client positions with 60 exchanges in total, made up of 18 trading member exchanges where MF Global UK had direct membership through nine clearing houses, and 42 overseas exchanges where MF Global used eight third party brokers and six affiliate brokers to gain access for UK based clients. In relation to these client positions, a total of over $1.5bn of collateral, including approximately $0.7bn in segregated funds and just over $0.8bn in non-segregated funds were held by the exchanges, clearing houses or brokers at the date of the appointment.
Update on client funds and MF Global UK funds collections
As at 12 December 2011, KPMG had recovered:
- £594 million of client monies held by clearing houses, exchanges and Brokers. This represents 82% of the segregated funds
- £201 million of company monies
Richard Heis, Joint Special Administrator of MF Global UK, said:
“We have worked closely with MF Global management and staff and the exchanges and clearing houses to allow the huge number of client positions to be transferred to other brokers or closed in an orderly manner, in accordance with the relevant rules.”
“We are pleased with progress in the collection of both client and company monies, and are working hard to prepare to make an interim distribution of client money as soon as reasonably practicable.”
Client and Creditor Claims Update
As of the morning of 16 December:
- The joint Special Administrators of MF Global UK have received 609 claims forms by email and a further 200 in the post
- 7,000 claims forms have been downloaded from the website, 85% downloading the Client forms (although there are likely to be duplicates here with people downloading multiple forms but just completing/submitting one form)
- The claims page on the website has had over 9,000 views
Claim forms are available to download from www.kpmg.co.uk/mfglobaluk. The claim form sets out the requisite information; how to complete the form; where to submit the form and other relevant conditions. All claims against client assets and the client money pool are requested to be submitted by Friday 30th March 2012.
For all non-press queries, please email your details to:
The administrators will respond to your query as soon as possible.
Press requiring further information please contact:
Lucinda Kemeny, MHP – 020 3128 8758 / email@example.com
Katie Hunt, MHP – 020 3128 8794 / firstname.lastname@example.org
Notes to Editors:
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP were appointed joint special administrators of MF Global UK Limited, a UK based broker-dealer business, and MF Global UK Services Limited, which provides employee and pension services in relation to the UK operations, at 5pm on Monday 31st October 2011. MF Global UK Limited is a wholly owned subsidiary of MF Global Europe Limited which in turn is a subsidiary of MF Global Holdings Limited, a company incorporated in Delaware, USA, which filed for chapter 11 bankruptcy protection on 31st October.
The objectives of the administration are:
- To ensure the return of client assets as soon as is reasonably practicable;
- To ensure the timely engagement with market infrastructure bodies and the Authorities pursuant to regulation 13; and
- To either rescue the Investment Bank as a going concern or wind it up in the best interests of creditors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.