The Joint Administrators of MF Global UK have provided the following update on progress since their appointment on Monday 31st October.
Richard Fleming, Joint Administrator and UK Head of Restructuring at KPMG, said: “Since our appointment we have received thousands of e-mails, telephone calls and letters from clients and related parties with highly complex requests, whilst we have sought to stabilise the companies’ operations. MF Global had around 10,000 customers at the time of appointment of administrators."
“We have held discussions with the companies’ employees, international trading exchanges, regulators, bankers and critical suppliers over the past 48 hours. Our team and the companies’ employees have already completed a great deal of work in agreeing trading positions with central counterparties and exchanges; substantial positions have also been closed out by agreement with numerous exchanges and clearing houses, with a view to reducing the market risk in the portfolio.”
The administrators have not made any redundancies amongst the companies’ staff and are working closely with them to effect the orderly return of client assets under applicable CASS rules.
Fleming went on to say: “We are working with the companies’ staff to transfer client positions wherever possible. Where exchanges and counterparties have defaulted the company under their own rules, we have worked 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."
“We understand the frustration amongst clients and market participants at the disruption that is currently being experienced and we are working hard to minimise the inconvenience caused. 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 possible.”
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For all non-press queries, please email your details to: email@example.com
The administrators will respond to your query as soon as possible.
Press requiring further information please contact:
Lucinda Kemeny, MHP
T: 020 3128 8758
Katie Hunt, MHP
T: 020 3128 8794
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:
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.
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP were appointed as the "Joint Special Administrators" of MF Global UK Limited following an application to the High Court in London by the directors of MF Global UK Limited on Monday 31 October 2011.