MF Global Spreads has ceased to be

[ningnong]

I'm looking for ideas about how to get back the £4000 I have sitting in my account with this ex-broker. The phone lines are all dead, and they don't reply to email, but they keep sending me statements as if nothing has changed. Yesterday I was able to close out my positions on the website.
Any ideas what happens next or who else I could call?

 

[pboyles]

I'm looking for ideas about how to get back the £4000 I have sitting in my account with this ex-broker. The phone lines are all dead, and they don't reply to email, but they keep sending me statements as if nothing has changed. Yesterday I was able to close out my positions on the website.
Any ideas what happens next or who else I could call?

Were MF Global regulated in Spain? If so there may be a compensation scheme available through them.

 

[pboyles]

Or look here

(MFG) Client Home

 

[pboyles]

If this is true then its getting pretty serious.

MF Global may have moved funds in final days | Reuters

 

[ningnong]

They weren't regulated in Spain. Despite the above link I am not assuming any fraudulent activity yet as statements are still being produced. I was just wondering what is SUPPOSED to be happening now.

 

[pboyles]

They weren't regulated in Spain. Despite the above link I am not assuming any fraudulent activity yet as statements are still being produced. I was just wondering what is SUPPOSED to be happening now.

Fraudulent or not they are bankrupt and a huge amount of clients money is currently missing, around $600 million. I dont know why getting a statement from them would reassure you.

If they are not regulated in Spain then you're in trouble, perhaps you used a UK address to open the account, then you might be able to go to the FSA and seek compensation. Dont hold your breath though, it will take time.

FSCS > Home

 

[kobza]

I have also an account at MF Global UK, no answering, from today thursday the 3rd. I talked to KPMG this morning, and it seems that they make difference between UK holders and foreign holders of accounts at MFG UK.
they didn't give any answer on the issue, really no good news or bad news, simply nothing.
Kob

 

[kobza]

UK administrators says have closed out substantial MF Global positions in agreement with numerous exchanges and clearing housesPrint

 

[Trader333]

Despite the above link I am not assuming any fraudulent activity yet as statements are still being produced

Going bankrupt does not imply fraud but you can still lose your money and the statements will just be an automated server routine that will continue to send out messages until it is shut down. It may not be pleasant to hear but as others have said I wouldn't presume funds are in any way safe.


Paul

 

[pboyles]

Going bankrupt does not imply fraud but you can still lose your money and the statements will just be an automated server routine that will continue to send out messages until it is shut down. As others have said I wouldn't presume funds are in any way safe.


Paul

Bankruptcy doesn't imply fraud but the statements by the regulators and various authorities certainly imply wrongdoing it terms of misusing client funds.

I'd be happy to make a wild guess and say there was fraud here.

 

[kalott]

I have also an account at MF Global UK, no answering, from today thursday the 3rd. I talked to KPMG this morning, and it seems that they make difference between UK holders and foreign holders of accounts at MFG UK.
they didn't give any answer on the issue, really no good news or bad news, simply nothing.
Kob

"talked to KPMG this morning, and it seems that they make difference between UK holders and foreign holders of accounts at MFG UK"

interesting

Fortunately, I have no account with MF

 

[pboyles]

Bad news if you're Australian

MF Global collapse exposes Australian loophole on client money

 

[scose-no-doubt]

I don't get it. Does that mean they could only use Australianseses money or that they could transfer customer accounts from across the globe to carry out the hedging?

 

[pboyles]

I don't get it. Does that mean they could only use Australianseses money or that they could transfer customer accounts from across the globe to carry out the hedging?

No only Australian accounts, other countries do not permit it, though they appear to have gone ahead and done it anyway.

 

[Hotch]

To be fair, you can't blame them for not answering phones etc, if your company goes broke, you're not going to go in to work are you?

 

[scose-no-doubt]

No only Australian accounts, other countries do not permit it, though they appear to have gone ahead and done it anyway.

But could they use overseas accounts as collateral to carry out hedging in Aus? Or are you saying that it would seem that they just didn't give a toss?

 

[pboyles]

I think that if you opened an account with them in the UK then they would be obliged to obey the FSA rules on segregating client funds and not using them for their own purposes. Likewise in the US, Canada etc where this rule is in place. However it appears they ignored these regulations and went ahead and used client funds anyhow. The way I read it they would only have been allowed to do this on Australian accounts.

Of course using client funds and making $600 million in client funds disappear are two different matters. I don't think the latter is permitted anywhere.

 

[Mayfly]

Thank you for your enquiry to KPMG LLP (UK) regarding the special administration of MF Global UK Limited and the administration of MF Global Services Limited. As you are aware, Richard Fleming, Richard Heis and Mike Pink were respectively appointed Joint Special Administrators and Joint Administrators following an application to the High Court in London by the companies’ directors on Monday 31 October 2011.

Since appointment the special administrators have been working closely with the companies’ staff to transfer client positions wherever possible. Where exchanges and counterparties have defaulted MF Global UK Limited (in special administration) under their own rules, we are working closely with them to try to optimise the outcome. We will continue to notify clients affected by these termination events as soon as possible, so they can take appropriate action. These notifications will be communicated through the companies’ normal communication channels. However, inevitably there are some logistical and procedural challenges to achieving this, so some delay is likely on occasion.

At this point the companies are unable to action requests for withdrawals from client accounts, which are now subject to the special administration process. Creditors will receive formal correspondence in the next 7 days detailing the process for making a claim. In relation to client assets and monies held by the company we are actively working to reconcile holdings and accounts in order to enable assets to be released as soon as practicable, which is one of our formal objectives under the Investment Bank Special Administration Regulations.

We understand the frustration amongst clients and market participants at the disruption that is currently being experienced.

Further updates will be posted on our website,= KPMG UK =, in due course.

 

[ningnong]

Thanks for that. At least I know what's happening.

 

[LutherUK]

I have an account with MF Global Spreads, they are no longer answering the phone. From my statement I have had 2 fund transfers cancelled before the went into administration. I've just written a letter to the administrators requesting fund funds back approx £700. I also phoned FSCS who advised check www.mfgloabl.co.uk for updates. And really will just have to sit back and wait for the money, it could be a long time. Hopefully the administrators will make returning client money a priority as it should have been ring fenced due to FSA rules. Cracked a few jokes with the bloke from FSCS which was funny. He had spoken to a bloke who had spoken with the administrators KPMG and they promised his money back in 5 working days.

Good luck!