CTA & MF Global

Discussion in 'Professional Trading' started by et2011et, Oct 31, 2011.

  1. et2011et


    If you are a CTA and you have client accounts with MF Global or you use “give up” through MF Global, how do you handle this current situation?
  2. you tell your clients that Mr Corzine is an expert with 35 years of experience, excellent credentials, relevant academic background, fully professional and always wearing an expensive suit.

    that is a sharp contrast to many CTA managers who are working in pyjamas from their little laptops and don't even have marble floors below their desks. what a shame.
  3. pwrtrdr


    Isnt it just shameful... really. Just terrible
  4. heech


    Very good question. And how do you account for this when calculating your strategy's performance...

    Hopefully you can get things moved quickly. I'd call other FCMs you already clear with, and see if they can expedite the account/position transfer process.
  5. et2011et


    I do not have any accounts with MF Global. But just like to learn from people who do have client accounts with MFG.

    My understanding is that there are some CTAs who have relationship with MFG.....
  6. Usually, there is an industry standard position transfer form or account transfer form to be filled out. But things begin to be complicated as it was reported that customer monies are "missing".
  7. Biog


    I have a few managed accounts held at MF. These accounts were liquidated (100% cash) and now it's up to the clients to decide the next move.
  8. Ash1972


    Can you tell me exactly when you liquidated these accounts? Was it last week?
  9. Biog


    Yesterday morning.
  10. heech


    Wow. Major suckage. Glad I don't have to deal with this, this week:

    November 1, 2011

    Proposed Guidance for CPOs with Pool Funds Held at MF Global, Inc.

    NFA recognizes the need for our CPO Members to keep their pool participants informed as to what has occurred with MF Global, Inc. (MF Global) and how it may affect future operations. In this regard, NFA, in consultation with the CFTC, is providing guidance on disclosures that CPO Members with pool funds held at MF Global must make to their participants. At a minimum, CPO Members must provide their pool participants with a disclosure statement that includes the disclosures summarized below. Members are also encouraged to provide any additional disclosures that are necessary given their specific business operations.

    If you are a Member operating a pool that has pool funds held at MF Global, you must make the following disclosures:

    On October 31, 2011, MF Global reported to the SEC and CFTC possible deficiencies in customer segregated accounts held at the firm. As a result, the SEC and CFTC determined that a SIPC-led bankruptcy proceeding would be the safest and most prudent course of action to protect customer accounts and assets, and SIPC initiated the liquidation of MF Global under the Securities Investor Protection Act.
    As of (insert date) approximately $XXX of (Name of Pool)'s assets were on deposit in an account(s) at MF Global. These assets represent XX% of the (Name of Pool)'s net asset value of $XXX.
    The General Partner does/does not believe that these actions will have a material impact upon the operations of (Name of Pool) and its ability to:
    Satisfy redemptions requests;
    Adequately value redemption requests and the manner in which they will be handled;
    Accept new subscriptions in (Name of Pool) and properly value the net asset value for new subscribers; and
    Provide for accurate valuation in the (Name of Pool)'s account statements provided to participants.
    Participants are cautioned that there can be no assurances:
    That (Name of Pool) will have immediate access to any or all of its assets in accounts held at MF Global; and
    As to the amount or value of those assets in the context of the bankruptcy.
    Participants should also be aware that future actions involving MF Global may impact (Name of Pool)'s ability to value the portion of its assets held at MF Global and/or delay the payment of a participant's pro-rata share of such assets upon redemption.
    The above disclosures must be provided to current pool participants through a separate written communication. In addition, Members who have a current disclosure document and plan to solicit new participants must ensure that they have updated their disclosure document to include these disclosures. In this regard, please remember that all amended disclosure documents must be submitted to NFA for review prior to use.

    Further, with respect to the valuation of pool assets and redemptions, each Member is urged to consult with its CPA to ensure these items are reported in accordance with generally accepted accounting principles or international financial reporting standards, as applicable.

    If you have any questions, please do not hesitate to contact the following individuals:

    Mary McHenry at (312)781-1420 or at mmchenry@nfa.futures.org
    Tracey Hunt at (312)781-1284 or thunt@nfa.futures.org
    Todd Maines at (312)781-1560 or at tmaines@nfa.futures.org

    You are receiving this message because you are a Member of National Futures Association (NFA).
    #10     Nov 1, 2011