Hey roblon, I think sending a letter to the judge is a good idea. At the very least it will put pressure on the trustee to get these funds moving back to all of us. I'd like to do the same thing. What e-mail address did you use? What was the general format of the letter?
I couldn't help remembering how arrogant one of the IB's at MF Global I talked to in May 2010 before I even had one client was or any capital for that matter. Now have accounts at PFGBest, Interactive Brokers, Fidelity Investments, TD Ameritrade, Tradestation so out of those I don't think any of them would ever put their customers through anything like this. Saying MF Global wasn't anything but a clearing firm but was actually its own hedge fund is probably more accurate.
The CME acts to enforce compliance in a default, but they are not liable. The seeking alpha post is pure horseshit and an embarrassment.
He probably got it wrong as far as a contract action. The CME 'contract' applies to it's internal balances, not the balances of brokers. However, there is plenty of legal fodder to go after the CME. Rather than going into CYA mode, they would have been well advised to get 100% of the money back to customers, see what they could recover through the bankruptcy, and cover the rest with added fees. They could have been heros, but chose to be goats. Very poor, lackluster, management.
With more read through it seams likely that MF Global's holding company influenced the brokerage arm to shift customer segregated funds into foreign sovereign debt in that closing week. Funds may have been used for margin payments per the Forbes article. There are requirements to maintain separately identified accounts (if I read the regulations correctly). So laws were clearly broken. MF Global's entire strategy seems based on keeping things afloat long enough to sell off the brokerage arm. While at the same time trying to liquidate it's corporate portfolio. The Refco II defense failed when IB got cold feet. At that point it was game over for Corzine. No wonder he quit to hire a good white collar crime firm. If I've read the regulations correctly there are no limits in place preventing MF Global [or any other FCM] from investing segregated customer section 1.25 or 30.7 funds in foreign sovereign debt. By dropping the ball not getting funds out to everyone up front, this slow and deliberate approach to liquidation could trigger a run on all FCM's by traders. This systemic risk needs to be addressed as aggressively as the actions taken to get traders open positions transferred.
Wondering how this might affect the issue: http://news.yahoo.com/insight-clients-fled-mf-global-face-clawback-risk-060415763.html
Is anyone acting on "MFG Trustee's Notice Regarding Specifically Identifiable Customer Property, Including Warehouse Receipts and Other Certificates of Title 7 Nov" http://www.cmegroup.com/clearing/files/Attention_MF_Global_Inc.pdf All claims must be made and collateral paid by 15 Nov. My account contains warehouse certificates but no open positions. As far as I can tell the account has not been transferred though I had an email reply to my query from ClearingInformation@cmegroup.com saying he thought it was being transferred to RJ O'Brien though I've heard nothing from them. I am planning to post collateral to recover the certificates. I have been emailing MFGIProperty@hugheshubbard.com to request the application form and get no response - time is short. I have tried phoning H & H without managing to talk to anyone who knows. I'm not sure of the implications if the account has been transferred. Just wondering of anyone else is in same boat. Presumably clause 2 only means Trustee would re-buy at the prevailing price so is completely open-ended and would mean losing control. Anyone disagree with my internpretation?
Re: the above article: I don't see 'Clawback' happening. Account holders have done nothing wrong to withdraw their own money from their own accounts. And there is no precedent. It would be tantamount to a huge fine - just for having participated in the futures industry. This is simply another case of attorneys believing they can put a claim on any asset, and intimidate some people into settling due to fear of legal fees (which is apparently already working). The first big fund who's willing to defend itself all the way to court, and force the loser to pay all costs for civil court will put an end to this once & for all.