On Friday 12/9/11, Judge Glenn approved a large, third bulk distribution to MF Global customers that will get all customers to the point where they will each have gotten back roughly 72% of the value of their assets in domestic futures accounts. Included in the 72% calculation will be US and foreign currency that was held in domestic accounts, T-Bills, warehouse receipts and physical commodities. Futures contracts will be valued as of their transfer or liquidation price, so that any gains or losses after 10/31/11 will be reflected in the calculation. What will not be included are any amounts held for trading foreign futures – recovery of those amounts will take more time and distributions will come later.
This distribution will begin immediately and most of the money will be distributed in a matter of days, although some amounts will involve more complex calculation and may take as long as 2 to 4 weeks. The distribution should involve cash transfers into the new FCM accounts already established for MF Global customers. For customers with physicals, they can communicate directly with the trustee to coordinate a method for taking possession of the physicals, subject to the requirement that they not receive more than 72% of their account value.
Neal R. Stevens
Of Counsel
Schuyler, Roche & Crisham, P.C.
nstevens@SRCattorneys.com
312 565.1045 tel (chi)
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.
