The SIPA Liquidation of MF Global Inc.
James W. Giddens, Trustee

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CLICK HERE FOR THE CUSTOMER CLAIMS REGISTER

HIGHLIGHTED INFORMATION

  • April 3, 2014 -Trustee Announces 100 Percent Customer Distribution

  • Excerpt: James Giddens today announced the final, 100 percent distribution to fully satisfy all claims of former MFGI public customers. With this distribution, a total of $6.7 billion will have been returned to over 26,000 securities customers and commodities futures customers.


LATEST INFORMATION AND COURT FILINGS

CLAIMS AND CLAIMS REGISTER

Determination Call Center Hotline: If you have a question about your claim, please e-mail the Trustee's staff at MFGITrustee@hugheshubbard.com or call the Trustee’s dedicated Determination Call Center Hotline at 888-643-2169 (inside the United States) or 212-837-6038 (outside the United States).

Claims Registers: For access to the MFGI Customer Claims Register, please click here. For access to the MFGI General Claims Register, please click here.

FORMS 1099

The Trustee has issued all Forms 1099-INT, 1099-DIV, and 1042-S, to the extent he is required by law to do so, to certain former account holders for whom there was reportable activity in 2013. The Trustee has issued all Forms 1099-MISC for vendors and independent contractors for tax year 2013. The Trustee was not required to issue any Forms 1099-B for tax year 2013.


If you have any questions, you may contact the Trustee's hotline at 1-888-236-0808, or send an email to MFGITrustee@hugheshubbard.com. Please include a contact phone number where you can be reached. Please note that the Trustee's staff cannot provide copies of Forms 1099 for years prior to 2011 or provide tax advice.


For answers to frequently asked questions about tax forms, please click here.


INFORMATION REGARDING PRO SE REPRESENTATION

Individuals not represented by counsel may complete and return the Pro Se Notice of Appearance Form if they wish to receive via email copies of all filings made by the Trustee.


Pro Se Individuals may file correspondence and other papers with the Court via facsimile transmittal, e-mail at (mfg@nysb.uscourts.gov), or mail, for the attention of the chambers of the Honorable Martin Glenn. All such papers should be clearly labeled as pertaining to In re MF Global Inc., Case No. 11-2790 (MG) SIPA.


GENERAL INFORMATION

This is the website for information pertaining to the U.S. Securities Investor Protection Act of 1970 (SIPA) liquidation of MF Global Inc. (MFGI), the U.S. broker-dealer of MF Global. James W. Giddens was appointed Trustee for the liquidation, and Hughes Hubbard & Reed LLP was appointed as counsel to the Trustee.


The liquidation has been referred to, and is now being administered under, the auspices of The Honorable Martin Glenn, United States Bankruptcy Court for the Southern District of New York (Case No. 11-2790 (MG) (SIPA). The liquidation of MFGI is overseen by James W. Giddens, as the Trustee appointed by the United States District Court for the Southern District of New York. The Trustee fulfills public duties assigned under SIPA. The Main Case Docket can be accessed through the website maintained by the United States Bankruptcy Court (http://www.nysb.uscourts.gov). An unofficial version of the Docket is accessible by selecting the "Docket" link at the top of this page.


The Trustee's primary goal is to fulfill the SIPA mandate to identify and marshal assets available to satisfy customer claims and to maximize the estate for all stakeholders in an orderly and fair process. The Trustee, in coordination with the Securities Investor Protection Corp. and federal regulators, is taking steps to protect customers of the brokerage.


Please continue to check this website for the most up-to-date information regarding the liquidation.


The information on this website does not apply to any other MF Global entity, including separate insolvency proceedings involving MF Global Holdings Ltd. (MFGHL) and MF Global Finance USA Inc (MFGFUI). For inquiries regarding those proceedings, please visit http://www.mfglobalcaseinfo.com.


CONTACT

GENERAL INQUIRIES REGARDING
THE SIPA PROCEEDING

INQUIRIES REGARDING LETTERS
OF DETERMINATION

CALL CENTER

US: 1-888-236-0808
INTERNATIONAL: 1-503-597-5173

EMAIL

MFGITrustee@hugheshubbard.com
DETERMINATION CALL CENTER

US: 1-888-643-2169
INTERNATIONAL: 1-212-837-6038

MEDIA INQUIRIES

KENT JARRELL
PHONE: (202) 230-1833
EMAIL: kjarrell@apcoworldwide.com


MESSAGE REGARDING NET EQUITY SETTLEMENT ASSIGNMENT AGREEMENT

Date: December 27, 2013

On December 20, 2013, Judge Victor Marrero preliminarily approved the Net Equity Settlement Assignment Agreement. Under the agreement, the Customer Representative who have sued certain former directors and officers and the former auditor of MF Global Inc. in a class action on behalf of former MFGI commodity futures customers have entered into an agreement with James Giddens, under which the participating customers will assign their litigation claims to the Trustee in exchange for the return of 100% of customers’ unpaid net equity claims. Full payment of unpaid net equity claims is dependent on final approval of the agreement, to be considered at a hearing on February 14, 2014, and pending the outcome of the appeal of the Allocation Order and appeals, if any, of the District Court’s order and the Bankruptcy Court’s related order approving the agreement.


This agreement is a necessary step needed to confirm class counsel's authority to make assignments, and it is a step toward implementation of the Allocation Order, which has been approved by the Bankruptcy Court.


Former MFGI commodity futures customers will receive notice of this agreement in the mail. To receive a full payment of unpaid net equity claims from the Trustee, customers DO NOT need to take any additional steps. Customers will automatically receive a payment UNLESS they exclude themselves by following the procedures set forth in this Notice.



Below are the documents related to the agreement:


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UPDATE REGARDING CUSTOMER DISTRIBUTIONS

Date: November 25, 2013

James Giddens is beginning an additional distribution, using funds that are currently available to him, to bring former MF Global Inc. customers who traded on foreign exchanges (30.7 customers) up to an approximately 78 percent distribution.


At this time, Mr. Giddens cannot make additional distributions until the issues raised by the appeal of Jon Corzine and others to the order approving allocation and 100 percent distribution are resolved. Mr. Giddens still expects to make a final 100 distribution on customer claims once the appeal is resolved through the required legal process.


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MESSAGE REGARDING CFTC CONSENT ORDER

Date: November 18, 2013

Judge Marrero’s approval of the CFTC Consent Order is procedural and confirms one of the bases for the MF Global Inc. Trustee’s recent motion and the Bankruptcy Court’s Allocation Order granting the Trustee authority to make 100% distributions to former commodity customers. The $1.212 billion restitution obligation referenced in the Consent Order represented the amount needed to make 100% distributions at the time the Trustee entered the consent order. As a result of the Trustee’s continuing efforts, the amounted need to make 100% distributions to customers is now $232 million and the Trustee has received authority from the Bankruptcy Court through the Allocation order to advance this sum from the general estate in order to make distributions to customers. The Trustee intends go forward with the distributions subject to possible appeals.


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MESSAGE REGARDING APPROVAL OF ALLOCATION MOTION

Date: November 5, 2013

Judge Martin Glenn today granted the motion of James Giddens, Trustee for the liquidation of MF Global Inc., seeking Bankruptcy Court approval for final allocation of property and advance funds from the general property of the debtor to the customer property fund for the purpose of completing 100 percent distribution on all allowed customer commodity claims.


Mr. Giddens will now move as quickly as possible, once the Court's order is final, to begin the 100 percent final distribution to all former MF Global Inc. commodities futures customers, including customers who traded on U.S. exchanges (4d customers) and foreign exchanges (30.7 customers).


This is a milestone achievement in the liquidation, and Mr. Giddens is delighted to be in a position to make a full return of customer property.


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MESSAGE REGARDING FILING OF ALLOCATION MOTION

Date: October 2, 2013

James W. Giddens, Trustee for the Securities Investor Protection Act (SIPA) liquidation of MF Global Inc., today filed a motion seeking Bankruptcy Court approval for final allocation of property and advance funds from the general property of the debtor to the customer property fund for the purpose of completing 100 percent distribution on all allowed customer commodity claims. Approval of this motion would allow Mr. Giddens to move forward with a 100 percent final distribution to all former MF Global Inc. commodities futures customers, including customers who traded on U.S. exchanges (4d customers) and foreign exchanges (30.7 customers). A final, complete distribution can only be initiated after Court approval.


The filing of this motion is a milestone event in the SIPA liquidation of MF Global Inc. Mr. Giddens’ goal throughout the liquidation proceeding has been to reach a 100 percent return of assets to the former customers of MF Global Inc., and the filing of the allocation motion is one of the final steps in achieving that goal.


Thus far, Mr. Giddens has distributed approximately 98 percent of 4d property, approximately 74 percent of 30.7 property, and 100 percent of delivery property and securities property.


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UPDATE REGARDING DISTRIBUTIONS

Date: July 18, 2013

James W. Giddens, Trustee for the Securities Investor Protection Act liquidation of MF Global Inc., anticipates significantly increasing distributions to MFGI’s former Futures Commission Merchant (FCM) customers in the coming months, with the ultimate goal of reaching a 100 percent distribution to all customer account classes. These further distributions are dependent on final approval of a motion by the Trustee to confirm the allocation of property already received and to be recovered from third parties to the fund of customer property.


Immediate Interim Distribution Rate Increase


On July 18 the Office of the Trustee initiated further distributions to customers trading on foreign exchanges (30.7 Customers) increasing the distribution rate to 26% of those customers’ allowed claims. Customers who have returned valid releases should receive checks from the Trustee’s office in the next few weeks.


Future Interim Distribution Rate Increase


Assuming that settlement agreements with J.P. Morgan Chase and MF Global UK (MFGUK) become effective in mid-August, and further assuming the receipt of cash from both of those parties by the end of August, additional distributions to all customers should be able to start in early September. The exact percentages to be distributed to customers trading on U.S. exchanges and foreign exchanges are dependent on how much property is ultimately received from MFGUK. It is likely that, as part of this potential future distribution, customers trading on U.S. exchanges (4d Customers) will receive distributions bringing them to a percentage recovery in the high nineties and that 30.7 Customers will receive distributions bringing them to a percentage recovery in the sixties.


Final Distribution to 100%


Upon approval of the consent order with the U.S. Commodity Futures Trading Commission (CFTC), Mr. Giddens further expects to file a motion seeking Bankruptcy Court approval to allocate additional funds towards the fund of customer property, which would allow a final distribution of 100 percent to all former MF Global Inc. commodities futures customers, including both 4d and 30.7 Customers. Those final, complete distributions can only be initiated after Mr. Giddens’ motion has been approved by a final, non-appealable order and after the receipt of funds from MFGUK referenced in the preceding paragraph. Depending on whether there are objections or appeals, this distribution is likely to occur sometime in the fall.


Mr. Giddens’ goal throughout the liquidation proceeding has been to reach a 100 percent return of assets to the former customers of MF Global Inc. These final steps in the process are the result of the effectiveness of settlement agreements and cooperation with MFGUK, MF Global Holdings Ltd., and J.P. Morgan Chase and their professionals as well as advice and guidance from the CFTC and the Securities Investor Protection Corporation and the consequent return of assets to the MF Global Inc. estate and release of required reserves.


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UPDATE REGARDING DISTRIBUTIONS ON MF GLOBAL INC. CUSTOMER CLAIMS

Date: April 11, 2013

The Trustee is continuing to make additional distributions to the former customers of MF Global Inc. (MFGI), after which customers will have received:


  • Approximately 89% of 4d property – for former commodities futures customers who traded on US exchanges (4d property customers) and have approved, finalized claims and signed releases.

  • Approximately 18% of 30.7 property – for former commodities futures customers who traded on foreign markets (30.7 property customers) and have approved, finalized claims and signed releases and, for customers with over $12,000 in 30.7 property, the required Amendment to the Declaration and Release.

  • 100% of securities property – for former broker-dealer securities customers with approved, finalized claims and executed releases.

  • 100% of deliveries property – for former customers with approved, finalized deliveries property claims who have signed releases.


Checks will continue to be issued on a rolling basis to commodities customers and broker-dealer customers with cash-only claims. Broker-dealer customers with securities distributions are being contacted to set-up delivery of securities as appropriate.


This is the maximum amount the Trustee can distribute at this time, pending court approvals and the effectiveness of the agreed upon settlements that are before the courts and may take several months for implementation. The Trustee will distribute as much as possible, as quickly as possible, consistent with the law and the need to reserve for disputed claims.


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MESSAGE REGARDING PROMONTORY FINANCIAL GROUP

Date: April 10, 2013

In response to recent questions regarding Promontory Financial Group’s work for MF Global, the Trustee considered information regarding this work during the course of his investigation, which was noted in the Trustee’s investigation report filed with the Bankruptcy Court on June 4, 2012. In particular, the Trustee’s investigation report stated:


  • During the late evening of February 26, 2008 and early morning of February 27, 2008, an MFGI trader, Evan Dooley, trading for his own account out of a Memphis, Tennessee branch office, wrongfully put on significant wheat futures positions, which were liquidated at a loss to the Firm of $141 million. This loss wiped out a significant percentage of the Firm’s profit for the year. When the loss was announced, the ratings agencies downgraded MF Global, and even though customer funds were not implicated, a number of MFGI customers lost confidence and withdrew their accounts.

  • After the Dooley trading incident, the CFTC fined MFGI $10 million for poor risk management practices. Regulatory proceedings and civil litigation ensued, and the Firm continued to struggle to generate revenues. In July 2008 the private equity firm, J.C. Flowers & Co. invested $150 million in MF Global in exchange for preferred shares and a seat on the Holdings Board.

  • To resolve the CFTC’s charges of violations, MF Global agreed to retain and implement best practices in its “risk management, supervision and compliance programs” as recommended by Promontory Financial Group LLC (“Promontory”). As part of its retention, Promontory undertook a comprehensive review of MF Global’s risk management and internal controls. Among the high priority recommendations were to enhance risk monitoring by updating and revising written risk policies and procedures.

  • Promontory also undertook follow up reports on MF Global’s progress in implementing these policies, as well as other recommendations. On May 26, 2010, Promontory reported to Holdings’ Audit Committee that MF Global had successfully and effectively implemented most of the Promontory recommendations and the CFTC undertakings and established an enhanced enterprise-wide risk management and compliance program and internal controls framework.


The Trustee’s investigation also concluded that MF Global’s business dramatically changed after Jon Corzine took over as CEO and Chairman of the Board of MF Global Holdings in March 2010. The company moved from being a modest customer and proprietary security business into a full-service global investment bank, with new lines of business that increased demands for daily liquidity. Despite the increased demands on global money management and liquidity, the firm’s Treasury Department did not expand or modernize and the firm never implemented systems or tools for accurate real-time monitoring of liquidity. The firm often tracked liquidity and ability to transfer funds by informal means that were derived from several different reports, both computerized and oral.


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INFORMATION REGARDING PROPOSED SETTLEMENT WITH JPMORGAN

Date: April 7, 2013

The Trustee for the liquidation of MF Global Inc. (MFGI), JPMorgan Chase Bank, N.A., and the customer representatives have reached a Settlement Agreement, which is subject to judicial review and approval by the courts before becoming effective. Click here to learn more.


Former MFGI customers who filed a timely claim in the Securities Investor Protection Act (SIPA) liquidation of MFGI do NOT need to file further claims to participate in the class action settlement and may click here to learn more.


Former customers who did NOT file a timely customer claim in the SIPA liquidation of MFGI, may click here to learn more and may click here to access the claim form for the Settlement Agreement. This form is separate from the customer claims form in the SIPA liquidation of MFGI and needs to be completed and returned by June 10, 2013. ONLY customers who have NOT previously filed timely claims in the SIPA proceeding and wish to share in the proceeds of the settlement and be bound by the results of the class action are required to complete the claim form for the Settlement Agreement. This claim is ONLY for use of former customers of MFGI who have NOT previously filed a timely claim with the SIPA Trustee and wish to be part of the class action settlement.


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MESSAGE REGARDING ADDITIONAL DISTRIBUTIONS

Date: January 31, 2013

Judge Martin Glenn today entered an order granting the Trustee’s motion to approve further distributions to former commodity futures customers of MF Global Inc., an order approving the Trustee’s settlement agreement with MF Global UK, and an accompanying opinion regarding the settlement.


The Trustee expects to start making significant additional distributions to former customers with finalized claims within weeks, using the assets that are currently on hand and by reducing the amount of reserves previously being held for disputed claims. In the future, as the conditions in the agreement with MF Global UK are satisfied and it becomes final and effective and the Trustee receives assets from MF Global UK, the Trustee will make additional distributions.


The Trustee is pleased to be in a position to make additional distributions at this time, in support of his continuous goal to return as much customer property as possible, as quickly as possible, in a fair and lawful manner.


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MESSAGE REGARDING PLAINTIFFS’ LAWSUIT

Date: November 5, 2012

Plaintiffs’ counsel representing former MF Global Inc. customers in the existing lawsuits against MF Global directors and officers, including former CEO Jon Corzine, and others, today filed a consolidated amended class action complaint with allegations including violations of the Commodity Exchange Act, breach of fiduciary duty, and negligence, among other causes of action.


The consolidated amended class action complaint filed by plaintiffs’ counsel alleges causes of action against Corzine, former CFO Henri Steenkamp, former COO Bradley Abelow, former General Counsel Laurie Ferber, former Assistant Treasurer Edith O’Brien, former CFO Christine Serwinski, former Global Treasurer David Dunne, former Global Treasurer Vinay Mahajan, MF Global’s independent auditor PricewaterhouseCoopers LLP (PwC), and CME Group, Inc. (CME Group), along with its subsidiary Chicago Mercantile Exchange, Inc. (CME).


The complaint includes claims against the directors, officers and auditors assigned by the Trustee to the plaintiffs in the cooperation and assignment agreement approved by the Bankruptcy Court and the District Court for the Southern District of New York. These claims are asserted on behalf of commodities and securities claimants, as well as on behalf of the corporate entity for the benefit of general creditors. The cooperation agreement supports the Trustee’s goal of maximizing recoveries for all customers and creditors as expeditiously and efficiently as possible and at the least cost.


The Trustee did not assign claims to plaintiffs’ counsel concerning CME Group, CME, or any entity or person other than former directors and officers and PwC. The Trustee announced in June that he had reached an agreement with CME Group, including CME, that included the return of over $130 million in property for the benefit of former commodity customers, and the agreement has now been approved by the Bankruptcy Court. Plaintiffs’ counsel is pursuing claims against CME Group and CME on behalf of the class, and not on behalf of the Trustee or MF Global Inc.


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MESSAGE REGARDING INNOVATIVE COOPERATION AGREEMENT WITH PLAINTIFFS’ COUNSEL

Date: August 15, 2012

James W. Giddens, the Trustee for the liquidation of MF Global Inc., today filed a motion for approval of a cooperation agreement between himself and the plaintiffs’ counsel representing former MF Global Inc. customers in existing lawsuits against former MF Global CEO Jon Corzine, CFO Henri Steenkamp, COO Bradley Abelow, General Counsel Laurie Ferber, and other former officers and directors of MF Global.


Pending approval by the Bankruptcy Court, the agreement establishes cooperation between the Trustee and plaintiffs’ counsel to actively and efficiently prosecute all claims through the currently pending litigation, with all recoveries distributed through the Trustee’s claims process. The cooperation agreement supports the Trustee’s goal to return as much customer property as possible as quickly as possible, while also minimizing duplication of efforts and expense.


The cooperation agreement represents a creative and effective approach to achieving multiple benefits for MF Global Inc.’s former customers and creditors, specifically by:


  • Ensuring all possible claims and legal theories for recovery will be asserted;

  • Eliminating the duplication by the Trustee of efforts already undertaken by plaintiffs’ counsel in the form of litigation now pending in the Southern District of New York, while offering the Trustee’s ongoing support;

  • Eliminating the need to adjudicate issues related to the Trustee’s standing to assert certain claims;

  • Assuring an efficient, equitable and cost-effective means of distribution for any recoveries arising from the claims through a claims process already established under the Bankruptcy Court’s supervision and avoiding a duplicative, expensive, confusing and possibly inconsistent second claims process that would result in lower recoveries for customers; and

  • Reducing the cost to the MF Global Inc. estate and MF Global Inc. customers arising from discovery requests, while still providing requesting parties access to the relevant and material documents at issue.


The Trustee’s motion for approval of the cooperation agreement, which includes the full text of the agreement, is available here


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UPDATE REGARDING ADDITIONAL DISTRIBUTIONS

Date: August 1, 2012

James W. Giddens, the Trustee for the liquidation of MF Global Inc., today testified before the Senate Agriculture Committee regarding his efforts to return assets to former customers of MF Global Inc.


As Giddens stated during the hearing, he is working to return as much customer property as possible, as quickly as possible, in a manner that is fair to all customers and that is consistent with the law. The Trustee’s goal remains to return 100 percent of property to former MF Global Inc. customers, and he continues to work expeditiously and diligently in pursuit of that goal.


However, it will be a difficult, lengthy and uphill battle to successfully marshal the substantial additional assets needed to pay customers 100 percent of their account values.


As the Trustee recovers customer property in material amounts, he intends to distribute it as promptly as possible to customers with allowed claims, as he has been doing. At this time, substantial disputed claims from MF Global affiliates, including MF Global Holdings Ltd., require the Trustee to hold appropriate reserves. Until those disputes are resolved, they are a significant impediment to additional customer distributions.


The Trustee is currently completing the first interim distribution, which will allow 4d commodities customers to receive 80 percent of their property traded on US exchanges and 30.7 commodities customers to receive 5 percent of their property traded on foreign exchanges.



The Trustee’s written testimony from today’s Senate Agriculture Committee hearing is available here


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MESSAGE REGARDING AGREEMENT WITH MF GLOBAL CANADA

Date: June 26, 2012

The MF Global Inc. (MFGI) Liquidation Trustee James Giddens has reached a resolution with MF Global Canada Co. (MFG Canada) that will provide for the return of approximately $61 million to the MFGI estate. In addition, the resolution will completely withdraw the MFG Canada omnibus claim of approximately $53 million against MFGI.


The agreement, subject to Bankruptcy Court approval, reconciles and nets the parties’ respective claims and avoids the uncertainty, delay and expense of complex, cross-border litigation with a foreign affiliate.


The property recovered by the Trustee was held by MFG Canada for MFGI customers trading on Canadian exchanges (30.7 funds), and the Trustee intends to make the 30.7 funds available for these customers. The agreement also reduces the MFG Canada omnibus claim against MFGI, potentially freeing additional funds previously reserved for MFG Canada by the Trustee.


The Trustee has determined that this agreement is in the best interests of MFGI customers and continues to seek resolution when possible to support his primary duty to recover property for the benefit of MFGI customers.



Click here for a copy of the Trustee’s motion.


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UPDATE REGARDING INTERIM DISTRIBUTION

Date: June 20, 2012

As part of the first interim distribution, James W. Giddens, the Trustee for the liquidation of MF Global Inc., has begun the process of distributing approximately $50 million of customer property held as secured by MF Global Inc. for its former commodities futures customers who traded on non-domestic exchanges (30.7 property), primarily in the United Kingdom. The distribution of 30.7 property is to customers with approved, finalized claims who have signed releases. After receipt of this distribution, customers will have received approximately 5% of their 30.7 property. Further related to 30.7 property, legal proceedings have commenced in the UK regarding the Trustee's approximately $700 million client claim with the UK Joint Special Administrators. Click here for information on the UK litigation.


A distribution will also begin shortly for customer property related to a domestic delivery class, which the Trustee has identified as consisting of physical customer property that has been or will be reduced to cash in any manner and which the Court approved as a separate class of commodity customer property.


On June 11, the Trustee began the process of distributing approximately $600 million of customer property held as segregated by MF Global Inc. for its former commodities futures customers who traded on US exchanges (4d property) to customers with approved, finalized claims who have signed releases. After receipt of this distribution, customers will have received approximately 80% of their 4d property.


This interim distribution, as approved by the Bankruptcy Court, will still allow the Trustee to maintain a proper reserve of funds for each class of customer property. The reserves must be held until disputed claims against the estate are either resolved through negotiation or by the Court. The Trustee hopes to seek Court approval for additional interim distributions in the future, while maintaining proper reserves.


Giddens has already distributed over $4 billion of commodity customer property through three bulk transfers initiated within weeks of MF Global’s bankruptcy filing.


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MESSAGE REGARDING CUSTOMER DISTRIBUTIONS

Date: June 15, 2012

As of June 12, 2012, additional distributions are being mailed out to former commodities customers of MF Global Inc. These distributions are continuing on a rolling basis.


James W. Giddens, Trustee for the Liquidation of MF Global Inc., hopes that additional distributions will be made to both former commodities and securities customers. However, at this time, the Trustee does not have sufficient funds available to seek court approval for additional distributions.


The Trustee is required to keep adequate reserves on hand in order to cover disputed customer claims, including those filed by the Trustee of MF Global Holdings Inc. on behalf of MF Global’s U.S. affiliates and the Joint Special Administrators on behalf of MF Global UK Limited. These claims are preventing the Trustee from making additional interim distributions.


The Trustee is persistently trying to resolve the claims and threatened objections to Letters of Determinations that disallowed or reclassified some customer claims. As in all phases of the liquidation, the Trustee is seeking to resolve disputed claims consensually and will resort to litigation only where necessary.


There is currently an approximately $1.6 billion shortfall in segregated property available to return to former customers. The Trustee is urgently working to eliminate the shortfall by determining the size of customer claims pools with the passing of the June 2, 2012, deadline for filing claims and by continued efforts at the recovery of funds through negotiation and litigation. In addition, the Trustee may request court approval for the allocation of non-segregated property to the pools of customer property.


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MESSAGE REGARDING AGREEMENT WITH CME GROUP

Date: June 14, 2012

James W. Giddens, the Trustee for the liquidation of MF Global Inc. (MFGI), filed a motion today seeking Bankruptcy Court approval for an agreement reached between the Trustee and CME Group that includes the return of over $130 million in property held by CME Group to the Trustee for the benefit of former commodity customers of the failed broker-dealer.


“This agreement supports my goal to expeditiously resolve outstanding conflicts with parties as we work to recover and distribute as much customer property as possible as quickly as possible, in a manner that is fair and consistent with the law,” Giddens said.


In total, the agreement provides for the disposition of over $175 million in MFGI property currently held or controlled by CME Group. The agreement is subject to Bankruptcy Court approval and will not be implemented until approved.



Under the terms of the agreement and if approved by the Court:
  • Over $130 million in property held by CME Group will be returned to the Trustee for the benefit of former commodity customers of the failed broker-dealer and allocated evenly ($65 million to each) to those customers trading on domestic (4d property) and foreign (30.7 property) exchanges.

  • All customer claims asserted under rules of the various CME Group exchanges will be deemed provided for and handled through the Court approved and supervised claims process in MFGI’s SIPA liquidation.

  • All non-customer claims asserted under rules of the various CME Group exchanges will be determined and directly paid for by CME Group using $16.5 million of the MFGI property retained by CME Group.

  • All claims asserted by CME Group will have a lower priority of payment than customers of the MFGI estate.


Click here for a copy of the Trustee’s motion and agreement.


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UPDATE REGARDING INTERIM DISTRIBUTION

Date: June 11, 2012

James W. Giddens, the Trustee for the liquidation of MF Global Inc., today began making additional distributions to former commodities customers with finalized claims as part of the first interim distribution. Checks will continue to be issued on a rolling basis as release forms are received from claimants.


Giddens has already distributed over $4 billion of commodity customer property through three bulk transfers initiated within weeks of MF Global’s bankruptcy filing.


Beginning today, the Trustee will distribute another approximately $600 million of customer property held as segregated by MF Global Inc. for its former commodities futures customers who traded on US exchanges (4d property) to customers with approved, finalized claims who have signed releases. After receipt of this distribution, customers will have received approximately 80% of their 4d property.


A distribution will also begin shortly for customer property associated with commodity transactions in foreign markets (30.7 property), which will be the first distribution of 30.7 property, and for customer property to a domestic delivery class, which the Trustee has identified as consisting of physical customer property that has been or will be reduced to cash in any manner and which the Court approved as a separate class of commodity customer property.


This interim distribution, as approved by the Bankruptcy Court, will still allow the Trustee to maintain a proper reserve of funds for each class of customer property, as the Trustee must do until disputed claims against the estate are either resolved through negotiation or by the Court.


The Trustee hopes to seek Court approval for additional interim distributions in the future, while maintaining proper reserves.


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UPDATE TO 30.7 CUSTOMERS REGARDING UK LEGAL PROCEEDINGS

Date: June 1, 2012

The first hearing before the English Court was held today as the initial step in the legal proceedings to help resolve whether the customer property that is the subject of the Trustee's approximately $700 million client claim with the UK Joint Special Administrators was or should have been segregated under English law.


At the hearing, a target date of April 9, 2013, was set by the UK court for the start of the trial. Prior to the beginning of the trial, both parties will participate in robust evidentiary disclosures and hearings.


As the advocate for all former customers of MF Global Inc., including those in the UK, the Trustee is prepared to fight in any jurisdiction for the return of customer funds to their rightful owner. The Trustee believes it is crucial that this intellectual dispute over how property was or should have been handled be urgently resolved so that the affected customers can receive back the property that is owed to them. The Trustee and his counsel will work diligently and expeditiously toward resolution of this litigation.


The Trustee will continue to press for this litigation to progress expeditiously. The quick resolution of this legal dispute will help the Trustee and the Joint Special Administrators to return as much customer property as possible as quickly as possible, in a manner that is consistent with the law. The Trustee urgently pressed for several months for the initiation of these legal proceedings in the UK.


In his capacity as the advocate for former MF Global Inc. customers, the Trustee filed claim forms with the Joint Special Administrators in January and secured a seat as a client representative on the MF Global UK creditors' committee.


The following documents were presented at today's hearing:


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MESSAGE REGARDING CLAIMS TRADING

Updated: May 30, 2012

Commodities futures and securities customer claims as well as general creditor claims may all be transferred in the MFGI SIPA liquidation proceeding. To receive notices and distributions with respect to a transferred claim, notice of a claim transfer (if any is required to be filed with the Bankruptcy Court) must be provided in accordance with Bankruptcy Rule 3001(e). It is recommended that potential transferors and transferees comply with all requirements as soon as entering into any transaction regarding claims so as to insure that notices and distributions are received by the proper claim holder.


The Trustee neither encourages nor discourages claims trading. Potential transferors and transferees of claims should make their own independent evaluation of whether to enter into a claims trade based upon the public record in this case. The Trustee notes that a properly transferred claim merely provides the transferee with the right to pursue distributions on account of such claim. It is not a determination of the validity, amount or priority of such claim, nor of any claim or defense that the Trustee may have with respect to that claim or as against the transferor or transferee of such claim.


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UPDATE REGARDING JPMORGAN CHASE

Date: May 18, 2012

As a result of ongoing discussions between JPMorgan Chase Bank N.A ("JPM") and the Trustee's professionals, JPM has returned approximately $168 million in cash to the Trustee. The $168 million represents the proceeds of excess collateral that JPM held at the commencement of MFGI's liquidation and its return follows a cooperative reconciliation between the Trustee and JPM. The Trustee continues to engage in discussions with JPM regarding his other potential claims. In that connection, the return of the $168 million is without prejudice to the rights of JPM or the Trustee, and JPM has retained a security interest in the $168 million to the extent that any of its allegedly secured positions become unsecured. The Trustee believes that this recovery will assist him in his primary duty of recovering property for the benefit of MFGI customers.


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MESSAGE REGARDING COMMENCEMENT OF LITIGATION IN THE UK

Date: May 3, 2012

The Trustee's litigation to restore property that was or should have been segregated for customers trading on UK and other foreign exchanges began today with the filing of an application for direction with the English court.


The Trustee is pleased that the Joint Special Administrators have filed the application for direction. The filing of this application, for which the Trustee has pressed for several months, begins the judicial process in the UK and will help resolve whether the customer property that is the subject of the Trustee’s approximately $700 million client claim with the Joint Special Administrators was or should have been segregated under English law.


“As the advocate for all former customers of MF Global Inc., we are prepared to fight in any jurisdiction for the return of customer funds to their rightful owners,” said James Giddens, the Trustee for the liquidation of MF Global Inc.


The adjudication of this litigation will involve robust evidentiary disclosures and hearings, the completion of which is subject to the procedures of the English court. The Trustee will press to have this litigation concluded as expeditiously as possible.


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CUSTOMERS OF MF GLOBAL CANADA CO. - TAX FORM ERROR

Date: May 1, 2012

Certain MF Global Canada Co. customers who were not customers of MF Global Inc. received Forms 1099-B from the Trustee for MF Global Inc. These Forms were printed and mailed in error. The error resulted from the inclusion in MF Global Inc.’s systems of account data for these MF Global Canada customers.


Trustee personnel became aware of the error and removed the data before submission of the tax files to the Internal Revenue Service. None of the data on these Forms 1099-B was transmitted to the IRS.


Click here for more information on the bankruptcy of MF Global Canada Co., or you may contact the Trustee’s 1099 call center hotline at 1-866-692-5639.


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UPDATE REGARDING INTERIM DISTRIBUTION

Date: April 26, 2012

Judge Martin Glenn has issued an opinion and entered an order granting the Trustee’s motion for an interim distribution of approximately $685 million for finalized commodity futures customer claims.


Included in the judge’s opinion was a requirement that the Trustee obtain new release forms from all claimants, as the Court declared all release forms already signed void due to the inclusion of assignment language. As the Court noted, the Trustee had sought these assignments to maximize his standing to assert claims for recovery of customer property.


The Court has also entered an order authorizing the new release form. The Trustee’s staff will mail new release forms that comply with the requirements established by the judge. All claimants will receive the new form in the mail in the next few weeks, once the Court’s order becomes final. Claimants who agree with the Trustee’s claim determination, even those who have already returned the previous release form, need to sign and return the new form as quickly as possible once it is received. The quick return of forms will allow the Trustee to begin the interim distribution process as soon as possible on a rolling basis.


The Trustee has received Court approval to distribute on a pro rata basis to customers with allowed claims who have signed releases:


  • Up to approximately $600 million of customer property held as segregated by MF Global Inc. for its former commodities futures customers who traded on US exchanges (4d funds).

  • Up to approximately $50 million of customer property associated with commodity transactions in foreign markets (30.7 funds).

  • Up to approximately $35 million of customer property to a domestic delivery class, which the Trustee has identified as consisting of physical customer property that has been or will be reduced to cash in any manner and which the Court in its opinion approved as a separate class of commodity customer property.


These distributions will be in addition to the over $4 billion in 4d funds and delivery class funds that have already been distributed.


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UPDATE TO 30.7 CUSTOMERS

Date: April 18, 2012

Update to 30.7 Customers: Trustee Calls for Litigation in the United Kingdom to Recover Approximately $700 Million of Customer Property


In furtherance of the Trustee’s duty to secure all segregated customer property for the benefit of MF Global Inc.’s former commodity customers, the Trustee has been engaged since November 2011 in active discussions with KPMG, the Joint Special Administrators for the estate of MF Global UK Ltd. concerning the return of approximately $700 million of segregated customer property. The Trustee has filed a client claim with the Joint Special Administrators seeking the return of all such segregated customer property. The Trustee has also engaged in an exchange of information with the Joint Special Administrators concerning his claim. That process has shown that there is a dispute between the Trustee and the Joint Special Administrators as to whether the customer property that is the subject of the Trustee’s client claim was or should have been segregated under English law. The Trustee believes that it is in the best interests of MF Global Inc.’s former commodity customers that this dispute be determined by the court and the Trustee has proposed, as a first step, that the Joint Special Administrators seek direction from the English court on these issues. The Trustee is pleased that the Joint Special Administrators have indicated their willingness to do so and hopes that an application for direction may be filed with the court as promptly as possible. The Trustee notes that to adjudicate this litigation on this basis will involve robust evidentiary disclosures and hearings, the completion of which is subject to English law and the procedures of the English court. The Trustee will press to have this litigation concluded as expeditiously as possible.


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UPDATE REGARDING THE LIQUIDATION OF PHYSICAL PROPERTY

Date: April 17, 2012

Below is an update for former MF Global Inc. commodity customers regarding the status of the Court-Ordered liquidation of physical customer property.


On April 6, 2012, U.S. Bankruptcy Judge Martin Glenn issued an Order approving the Trustee’s Section 363 Purchase Agreement in Furtherance of Court Ordered Bulk Transfers. That order can be found here. The liquidation of the specified physical property is now complete. As such, the Trustee is currently finalizing the pro rata distributions in accordance with the Third Bulk Transfer for affected customers and expects to authorize these distributions by the end of this week.


In accordance with the Court’s Order, customers who requested a full liquidation of their physical property will receive a pro rata distribution (as cash only), which will incorporate the proceeds from liquidation as a component of their account’s value. For customers who specified only a partial liquidation of their physical property, they will receive a distribution of their remaining physical property and, potentially, additional cash up to their pro rata distribution. In a situation where distributing a customer’s remaining physical property would cause an over-distribution of their pro-rata share, that customer will be required to post a deposit to cover the difference, in which case the Trustee’s counsel will be contacting customers in such a situation directly to arrange for posting the required deposit.


Customers with questions may contact the Trustee’s help line at 888-236-0808.


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UPDATE ON STATUS OF INVESTIGATION

Date: April 12, 2012

Based on his investigation of conduct, allocation of responsibilities and reporting with respect to the segregated customer accounts, the Trustee believes that there are claims he may assert against certain responsible individuals at MFGI and Holdings (and Holdings itself) for, among other things, breach of fiduciary duties owed to both MFGI and its customers, and violations of the segregation requirements of the Commodity Exchange Act. The Trustee is committed to discussing and working cooperatively to the extent possible with representatives of customers, with the goal of recovering customer property for distribution in accordance with the established claims process in the MFGI liquidation.


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STATUS OF TRUSTEE'S INVESTIGATION OF CHASE

Date: April 4, 2012

The Trustee has conducted an investigation of the actions of JPMorgan Chase Bank, N.A. regarding JPMorgan's activities in connection with MF Global. JPMorgan has cooperated with the Trustee's investigation, which has included witness interviews and review of extensive documentation by the Trustee's professionals, including attorneys and forensic accountants from Ernst & Young. The Trustee and JPMorgan are presently engaged in substantive discussions regarding the resolution of claims.


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MESSAGE REGARDING IRS ANNOUNCEMENT

Date: March 23, 2012

The IRS today announced it will provide penalty relief to farmers who incur estimated tax penalties because they did not receive Forms 1099 from MF Global or the Trustee in time to file their 2011 calendar year tax return by March 1, 2012. More information is available at http://www.irs.gov/newsroom/article/0,,id=255933,00.html.


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MESSAGE REGARDING LETTERS OF DETERMINATION

Date: March 12, 2012

At this time, the Trustee has mailed letters of determination to a majority of former MF Global Inc. commodities customers who submitted claims to the Trustee by the January 31, 2012 deadline. Claims continue to be reviewed, and the Trustee will continue to issue determinations to claimants on a rolling basis.


Claimants who have questions about their letters of determinations are encouraged to call the Trustee’s dedicated Determination Call Center Hotline at 888.643.2169 (inside the United States) or 212.837.6038 (outside the United States). By calling the hotline, claimants may speak with a representative of the Trustee to discuss and possibly resolve any difference between the amount that was claimed and the amount that the Trustee allowed.


The Trustee's goal is to resolve questions or disputes regarding determinations informally over the phone whenever possible.


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MESSAGE TO FORMER MF GLOBAL INC. CUSTOMERS WHO HELD PHYSICAL PROPERTY

Date: March 12, 2012

The Trustee would like to update former MF Global Inc. customers who held physical property on his efforts to distribute that property. These efforts are consistent with the Trustee’s goal to return as much customer property as possible, as quickly as possible, in a manner that is fair to all customers and that is consistent with the law.


On December 12, 2011, U.S. Bankruptcy Judge Martin Glenn issued an Order approving the Trustee’s request for approval of a bulk transfer and distribution to former MF Global Inc. retail commodities customers with US futures positions, resulting in those account holders receiving approximately 72% of their U.S. customer property. To read Judge Glenn’s order, please click here.


Included in this order is the distribution of physical customer property. At this time, all physical customer property has been distributed to customers on a pro rata basis, as authorized by the December 12, 2011 Order, with the exception of those customers who have directed the Trustee to liquidate all or part of their physical property. On March 12, 2012, the Trustee filed a motion with Judge Glenn outlining his proposed method for liquidating this remaining physical property. As set forth in the motion, subject to Bankruptcy Court approval, all physical property which has been designated for liquidation will be sold to a single counterparty. The purchase price for the physical property will be set at 99% of the value of the applicable commodity in the forward month in which that commodity is actively traded.


Presuming the Bankruptcy Court approves the Trustee’s method for liquidation, after liquidation, if a customer requested a full liquidation of their physical property, they will receive a pro rata distribution (as cash only), which will incorporate the proceeds from liquidation as a component of their account’s value. If a customer specified only a partial liquidation of their physical property, they will receive a distribution of their remaining physical property and, potentially, additional cash up to their pro rata distribution. In the case that distributing a customer’s remaining property would cause an over-distribution of their pro-rata share, that customer may be required to post an additional deposit to cover the difference.


If the Court approves the method for liquidation, the Trustee will post a notice to his website when the liquidation has occurred and the distributions have been made, and will email that notice directly to affected customers. Customers with questions may contact the Trustee’s help line at 888-236-0808.


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UPDATE TO FORMER MFGI COMMODITIES CUSTOMERS WHO TRADED ON FOREIGN EXCHANGES

Date: February 20, 2012

At present, the vast majority of funds secured for US commodities customers who traded on foreign exchanges remain abroad under the exclusive control of UK Special Administrators. All foreign affiliates of MF Global Inc. that received funds from customers of MF Global Inc. agreed to secure and protect those funds as required by Commodity Futures Trading Commission Rule 30.7 (“CFTC Rule 30.7”).


The Trustee would like to assure former MF Global Inc. commodities customers who traded on foreign exchanges that he is pursuing those funds vigorously and is taking the necessary steps to bring those funds under his control so that they can be returned to customers.


  • On January 6, 2012 the Trustee filed claim forms (for voting purposes only) with the MF Global UK Special Administrators. Among other things, the forms provided information supporting MF Global Inc.’s claim to $639,918,174 in client funds held by MF Global UK pursuant to CFTC Rule 30.7 (the “30.7 Funds”).

  • The UK Special Administrators preliminarily objected to the classification of a significant portion of these 30.7 Funds as being either client money or client assets under relevant Financial Services Authority (FSA) rules.

  • The Trustee actively sought and secured a seat as a client representative on the MF Global UK creditors’ committee. The Trustee has executed a Nondisclosure Agreement as regards his participation on the committee. The Trustee intends to participate vigorously on the committee.

  • The Trustee continues to negotiate for the prompt return of all 30.7 Funds directly with the Special Administrators and their legal counsel.

  • In a report filed with the UK Court on February 3, 2012, the UK Special Administrators asserted that the 30.7 Funds were not, at the time of insolvency, segregated as either client assets or client monies under applicable FSA rules. Accordingly, the Special Administrators have further asserted that the Trustee’s claim for the 30.7 Funds should be admitted only as a general creditor claim. The Trustee disputes the Special Administrators’ position that an agreement to secure client funds pursuant to CFTC Rule 30.7 does not require client funds to be segregated under the FSA rules or that such property would not be regarded as segregated under a proper interpretation of UK law in light of the circumstances and the dictates of European requirements as well as principles of international comity.

  • The Trustee is actively engaged in discussions with the UK Special Administrators as both parties work toward resolving this dispute. However, the Trustee cannot now estimate how long these negotiations will take or whether they can be resolved without the need for litigation, and it is unknown when he will be able to make distributions to former commodities customers who traded on foreign exchanges.

  • The Trustee has retained the firm of Slaughter & May as his principal English legal advisors, as well as a team of English barristers. If negotiations do not prove fruitful, the Trustee is prepared to litigate his claim.


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UPDATE ON ESTIMATED COMMODITIES DEFICIENCY AND CLAIMS PROCESS

Date: February 10, 2012

The Trustee, relying on the books and records of MF Global Inc., the investigation that has traced a majority of the cash transactions during the last week before the bankruptcy of MF Global Inc., and the claims process, currently believes there is at least a $1.6 billion gap between the value of the Trustee’s estimate of potentially allowable commodities claims and the assets that are currently under the Trustee’s control. This reconfigured estimate is expected to change over time as claims are processed and assets recovered, and depending on claims reconciliation and the ultimate outcome of claims the Trustee may contest, the estimated deficiency may rise or fall in significant amounts. The estimate applies to claims from commodities customers who traded on US exchanges, as well as commodities customers who traded on foreign exchanges, including approximately $700 million that the Trustee is disputing with the Joint Special Administrators of MF Global UK Limited.


The Trustee has returned approximately $3.9 billion in property from US depositories to former commodities customers in three bulk transfers since MF Global went into bankruptcy on October 31, 2011. Currently, the Trustee has approximately $1.4 billion in assets under his control, which is being held in reserve.


The Trustee and his staff continue to review and tabulate claims made by former MF Global Inc. commodities customers against the MF Global Inc. estate, which were submitted prior to the January 31, 2012 claims deadline.


Early estimates of the analysis of commodities claims show approximately 40% of the US commodity claims came from five states: California, Florida, Illinois, New York and Texas. Approximately 91% of all commodities claims seek less than $100,000, taking into account the previous return of 72% of the US segregated customer property to former retail customers with US futures positions.


Claims will be verified for accuracy and duplicate claims will be identified. Determination letters are being issued to former customers on a rolling basis. The determination letter will acknowledge receipt of the claim and provide information on whether the claim has been allowed, denied, reclassified or requires further reconciliation or information.


The Trustee is eager to make additional distributions to former MF Global Inc. customers as soon as possible. However, the Trustee is required by law to hold an appropriate reserve of funds until disputed claims are resolved either through negotiation or by the Court. At this time, the Trustee anticipates significant disputed claims against the MF Global Inc. estate by MF Global Holdings Ltd., MF Global UK Limited, and other entities. The Trustee will move to attempt to resolve these claims as quickly as possible, but it is uncertain how long resolution will take. Therefore, it is not known at this time when the Trustee will be legally able to make additional distributions.


While securities customers seeking to receive maximum protection under the Securities Investor Protection Act were asked to file claims by January 31st, the claim registration period for securities customers does not close until June 2, 2012. The gap between securities claims values and assets under the Trustee’s control cannot be accurately estimated at this time.


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NOTICE TO FORMER MFGI CUSTOMERS FOR WHOM THE TRUSTEE IS STILL HOLDING PHYSICALS

Date: January 23, 2012

Notice to those former MFGI customers for whom the Trustee is still holding warehouse receipts or other certificates of title (“Physicals”) who (i) have not been in contact with the Trustee’s office regarding their instructions for distribution of the Physicals; or (ii) believe there may be a discrepancy as to what Physicals the Trustee still holds for them:


PLEASE review the Order from Judge Martin Glenn, issued January 23, 2012 – you must contact the Trustee’s office immediately to discuss options for the distribution of your Physicals


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NOTICE OF A PUBLIC MEETING WITH FORMER MFGI CUSTOMERS AND OTHER CREDITORS


On January 12, 2012 at 10:00 a.m., the Trustee for the liquidation of MF Global Inc. will meet with former MF Global Inc. customers and other creditors at the New York Marriott Downtown, 85 West Street, New York, NY 10006. At this meeting, the Trustee will provide information about the customer claims process and an update on the progress of the court-mandated liquidation of MF Global Inc.

Former customers of MF Global Inc. who have immediate questions are encouraged to seek information on this website, e-mail the Trustee's staff at MFGITrustee@hugheshubbard.com, or call the Trustee's call center at 1-888-236-0808.


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MESSAGE REGARDING THE THIRD BULK TRANSFER

Date: December 22, 2011

As set forth in the Court-approved order for the third bulk transfer, and consistent with previous transfers, the Trustee used MF Global Inc. records and valuations to transfer roughly $1.7 billion in customer property as he seeks to return approximately 72 percent of the net equity in U.S. segregated customer accounts. MF Global Inc.'s systems reduced the valuation of securities deposited as margin by a designated percentage, which could have potentially decreased the net liquidating value of an account. With the initial transfers of the third bulk transfer now complete, the Trustee intends to revalue margin collateral accounts without applying MF Global Inc.'s valuation "haircut" and will consider upward adjustments to the estimated net liquidating values of customer accounts. If possible, the Trustee will make supplemental transfers in the next two to four weeks, as the systems and books and records of MF Global Inc. allow.


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MESSAGE REGARDING CLAIMS PROCESS

Date: December 2, 2011

This week, counsel for the Trustee liquidating MF Global Inc. met with several dozen former MF Global Inc. customers and customer groups, as well as their counsel. Through this productive meeting, the Office of the Trustee identified some common questions on the claims process. Below, please find information that addresses these common questions. In addition, more information pertaining to filling out the Commodity Customer Claim Form is available here. The Trustee's goal is to make claims forms as efficient to access and to complete as possible for all former customers of MF Global Inc.


Key Claims Filing Instructions
  • Commodities customer claims must be received by the Trustee on or before January 31, 2012.

  • Customers are encouraged to fill out claims forms to the best of their ability with as much information as possible. More is better, but missing or incomplete information does not mean the claim will be automatically denied.

  • Claims forms are required to be consistent with CFTC regulations. The Trustee has worked with claimants to make the forms as customer friendly as possible, and the Trustee's staff will continue to work with customers directly to assist in filing their forms as needed.

  • The Trustee has mailed paper forms to former customers of MF Global Inc., in addition to placing PDF claims forms on the Trustee's website.


Determinations

Claims will be reviewed promptly, and once the Trustee's staff has finished reviewing your claim, a determination will be made regarding your claim. You will then receive a determination letter in the mail. The Trustee's staff will work with claimants at all stages of the process, including answering any questions about a determination, in an attempt to reach a fair conclusion. It is not the wish or desire of the Trustee to engage in litigation with individual claimants.


Assets in Foreign Depositories

The Trustee has made important and significant progress in identifying and returning assets of the US segregated customer property, now under the Trustee's control, for customers who were trading in US positions. Many customers, in addition to trading through US derivative clearing organizations, also held positions in foreign commodities traded through foreign depositories, which are called secured 30.7 accounts.


It is estimated that these accounts could have a value of less than one billion US dollars. These assets are now under the control of foreign bankruptcy trustees, and the Trustee will use all means available to gain control of those assets held by foreign entities for the return to customers. However, it has been the Trustee's experience that recovery of these foreign assets may take significant time. At this time, the Trustee does not have control of these assets and it is not known when, or if, the assets will become available to the Trustee. However, all customers of MF Global Inc. are strongly urged to file, before the January 31, 2012 deadline, any claim they believe they have for US and/or foreign positions they believe they had in their accounts.


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SECOND PROGRESS REPORT OF THE SIPA TRUSTEE OF MF GLOBAL INC.

Date: November 20, 2011

James W. Giddens, the Trustee for the liquidation of MF Global Inc., and his staff are working closely with the Securities Investor Protection Corporation (SIPC), the Commodities Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and also with the Chicago Mercantile Exchange (CME) and other exchanges. Since the liquidation process was initiated on October 31, 2011, the Office of the Trustee has made significant progress.


The Trustee's team is working to get money back to customers as quickly as possible following the failure of MF Global Inc., and is facing several circumstances as it works toward that goal: there was no single purchaser for MF Global Inc.'s commodities or securities accounts, the books and records require further analysis and reconciliation, and there is an apparent shortfall of segregated customer property.


Nevertheless, distributions to nearly all of the 38,000 MF Global Inc. former commodities clients will have been made within weeks of the bankruptcy filing.


  • OPEN POSITION ACCOUNT TRANSFERS: The Trustee obtained court approval for and moved 14,500 accounts with 3 million open positions, along with $1.5 billion in collateral, approximately 60% of collateral for those positions. Customers, upon notification of transfer, had immediate access to their accounts.

  • CASH-ONLY ACCOUNT TRANSFERS: The Trustee obtained court approval for a second bulk transfer, currently underway, to move a percentage of deposits in 23,300 accounts holding cash-only as of the filing date of the bankruptcy. As previously noted, the process is underway and its success requires finding Futures Commission Merchants to process the transfers.

  • NEXT TRANSFERS: The Trustee is planning a third phase of transfers to "true-up" the value of all claimants' distributions to 60% of the "net equity" of their accounts, including a few hundred accounts not included in the first two bulk transfers. Distributions may be made by bulk transfer, if feasible, and through an individual claim process.

  • SECURITIES CLAIMANTS: Ever since his court appointment, the Trustee and his staff have continued to explore a bulk transfer of all securities accounts. This is dependent on identifying another broker-dealer willing to take the accounts. To date, several broker-dealers have and continue to conduct due diligence, but unfortunately no transferee has agreed to take the accounts. The Trustee is continuing to seek a willing transferee.

  • CLAIMS PROCESS: The Trustee moved within two weeks of his appointment to establish an expedited claims process. The Trustee recently held a meet-and-confer session with counsel for parties who had specific suggestions for the expedited claims process. To assist in the prompt processing of claims, the Trustee is working with his professionals to establish an online claims form, and, in the meantime, the Trustee will be making PDF claims forms available on his website (www.mfglobaltrustee.com) and will be mailing paper forms to former customers of MF Global Inc. The Trustee is seeking court approval of the claims process and a hearing on the matter will be held in the U.S. Bankruptcy Court of the Southern District of New York on Tuesday, November 22, 2011, at 3 PM.

  • INVESTIGATION: The Trustee's staff is also working to understand the apparent shortfall in customer funds. This includes a deliberate, thorough, and independent investigation of the complex cash movements made by MF Global Inc. prior to its liquidation. All efforts are conducted under the supervision of the Bankruptcy Court and are coordinated with the United States Department of Justice, the CFTC, the SEC, and SIPC.

  • TRUSTEE'S STAFF: The Trustee has assembled a professional staff consisting of experienced legal counsel, forensic accountants and other expert consultants with liquidation experience. The Trustee's staff includes professionals from Hughes Hubbard & Reed, all of whom have broker dealer liquidation experience. They are overseeing and supervising 100 Deloitte consultants and 60 Ernst & Young forensic investigative accountants and consultants, and a staff of 190 former MF Global employees. This team shares vast experience in commodities brokers and stockbroker liquidations, forensic accounting, and technology consulting.

    In addition, the Trustee's expert staff has also been working side-by-side with the SEC, SIPC, the CFTC, the CME, and other self-regulatory organizations and derivative clearing organizations. The staff of these organizations has been providing additional industry knowledge and assisting the Trustee in structuring and completing the bulk transfers. The Trustee has also welcomed suggestions and advice from other knowledgeable parties in the futures, options and commodity industries.


The Trustee understands the frustration of many former MF Global Inc. customers. The Trustee and his staff have responded to thousands of phone calls, letters and other correspondence from customers and creditors, and will continue to do so. The Trustee's goal remains returning as much customer property as possible, as quickly as possible, in a manner that is fair to all customers and that is consistent with the law.


Customers and others are urged to continue visiting the website, www.mfglobaltrustee.com, which will remain the primary and most efficient means of providing timely and accurate information concerning this liquidation.


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MESSAGE REGARDING CLAIMS FORMS

Date: November 19, 2011

All forms related to the MFGI claims process will be posted to this website once the Court approves the Trustee's Expedited Application for Entry of an Order Establishing Parallel Claims Processes for Commodity Futures Customer and Securities Customer Claims; Approving Form and Manner of Publication and Mailing of Notice of Commencement; Specifying Procedures and Forms for Filing, Informal and Formal Determination, and Adjudication of Claims; Fixing a Meeting of Customers and Other Creditors; and Fixing Interim Reporting Pursuant to SIPA.


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MESSAGE REGARDING DISTRIBUTION GOALS OF SIPA TRUSTEE

Date: November 18, 2011

James W. Giddens, the Trustee for the liquidation of MF Global Inc., stated that his primary goal and aspiration is to pay commodities claimants and securities customers 100% of the amounts in their accounts as promptly as permitted by the governing regulations of the Commodities Exchange Act and the Securities Investor Protection Act and authorization by the US Bankruptcy Court. Ultimate distributions are, of course, dependent upon assets available and there is no assurance of a 100% return.


The plan for resolution of commodities claims is to make permissible distributions through "bulk transfers" to Future Commission Merchants (FCMs) willing to accept such transfers. The first transfer was aimed at avoiding forced liquidations of future positions held by claimants and severe market disruption. There were more than 3 million positions with a notional value of $100 billion. Upon approval by Judge Martin Glenn, the positions of approximately 14,500 customers were transferred successfully to other FCMs and 60% of the collateral at the CME and other DCOs supporting such positions were transferred to the FCMs. Customers, upon notifications, had immediate access to their accounts.


The second bulk transfer to approximately 23,000 claimants holding cash only in their accounts as of the filing date of the bankruptcy, October 31st, was authorized by the Bankruptcy Court on November 17th. The process is underway and its success requires finding FCMs to process the transfers. It is expected that funds will be accessible within a week or so.


The third phase of distributions is a proposed additional bulk transfer for all claimants to "true-up" the value of their distributions to 60% of the "net equity" in their accounts, including some estimated few hundred not included in the first two bulk transfers. The complex accounting data to reflect the first bulk transfer has only recently been compiled. The feasibility of any bulk transfer is dependent upon finding FCMs to receive such assets.


Distributions may be made by bulk transfer if feasible and through an individual claim process. Procedures for this claims process are before the Bankruptcy Court for consideration.


At present, the assets the Trustee has control of in commodities segregation are substantially less than the estimated allowed commodities claims. Efforts are on-going to analyze the cause of the "short-fall" and to seek to remedy it in coordination with multiple regulators and law enforcement officials.


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UPDATED MESSAGE TO SECURITIES CLAIMANTS OF MFGI

To: Securities Claimants of MFGI
Date: November 17, 2011

Ever since his court appointment, the Trustee and his staff have continued to explore a bulk transfer of all securities accounts. This is dependent on identifying another broker-dealer willing to take the accounts. To date, several broker-dealers have and continue to conduct due diligence, but unfortunately no transferee has agreed to take the accounts. Under the law, aside from a bulk transfer, the Trustee does not have authority to move individual accounts or transfer account property outside of a claims process. The Trustee has sought expedited relief from the court for a claims process, and at the same time will continue to seek a willing transferee.


Please be assured the Trustee is very much focused on securities customers and is doing all he can to address the concerns of those individuals.


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STATEMENT REGARDING MFGI CLAIMS PROCESS

Date: November 10, 20111

James B. Kobak, Jr., counsel to the Trustee for the liquidation of MF Global Inc.: "Having completed bulk transfers as authorized by the Commodity Exchange Act and the Securities Investor Protection Act, the Trustee will be filing a motion to establish an expedited claims process, which will require approval by the United States Bankruptcy Court. Commodities and securities customer claimants will receive claim forms and claims filing instructions. The claims will be reviewed promptly. The Trustee's staff will communicate directly with claimants regarding questions related to their claims. Distributions will be made as promptly as possible, and it is possible that distributions will be made in increments. The Trustee is not authorized to make individual account transfers."


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MESSAGE TO COMMODITIES CLAIMANTS OF MFGI

To: Commodities Claimants of MFGI
Date: November 10, 2011

  • "Shortfall"

    Until an investigation into complex cash movements at MF Global is completed by the Department of Justice, the Commodity Futures Trading Commission, the Securities and Exchange Commission, and the Trustee's staff in cooperation with the Securities Investor Protection Corporation, we will not know the extent of any deficiency in funds which should have been segregated by MF Global for your benefit. While the investigation is proceeding around the clock we are unable to estimate when it will be complete. The Trustee's investigation will be deliberate, thorough, and independent.


  • Individual transfers

    While we have received many requests for individual transfers, we must treat all customers equally and fairly and do not have authority to make such transfers.


  • Distributions

    MF Global is now in a court supervised liquidation. It has ceased to do business, and it will not reorganize. The law requires that all commodities customers be treated fairly, and on a pro rata basis. Under applicable law, we can only distribute an amount of collateral estimated with the relevant commodities exchanges, the CFTC and SIPC, that will not exceed the contemplated pro rata shares of each commodity customer's claim to the amount of funds segregated for commodities customers. Thus, we need to determine the amount of all claims before any distribution may be made. We are developing an expedited claims process to accelerate this process and to enable us to make additional distributions as soon as possible. If your pro rata share of the segregated pool produces a deficiency in your claim, you also have a claim as an unsecured creditor against the general assets of MF Global, along with other unsecured creditors.


  • Inquiries of the Trustee's Staff

    The process is being expedited as quickly as possible. While we understand your dismay at MF Global's failure, we are and will continue to be responsive to the thousands of inquiries and we will continue to post relevant information when available promptly on this website.


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MESSAGE TO SECURITIES CLAIMANTS OF MFGI

To: Securities Claimants of MFGI
Date: November 10, 2011

  • General

    The process governing claims under the Securities Investor Protection Act requires filing of claims with the Trustee and, after allowance, the distribution of cash and securities in one's account as of October 31, 2011. Any deficiency in an allowed customer claim, subject to certain exceptions, is covered by the Securities Investor Protection Corporation up to $250,000 in cash or up to $500,000 for securities, not to exceed $500,000 in total. The claims process must be approved by the United States Bankruptcy Court, and we are working to expedite that process.


  • Bulk Transfer

    We are also endeavoring to effect a bulk transfer of securities customer accounts, if a willing purchaser can be found. This process is underway, but there is no assurance of a successful transfer. The Trustee would seek court approval of any transfer.


  • Inquiries of the Trustee's Staff

    The process is being expedited as quickly as possible. While we understand your dismay at MF Global's failure, we are and will continue to be responsive to the thousands of inquiries and we will continue to post relevant information when available promptly on this website.


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MESSAGE TO FORMER CUSTOMERS OF MFGI

To: Former Customers of MF Global Inc.
Date: November 7, 2011

UPDATE: Commodity customer accounts that have not been transferred as part of the bulk transfer of accounts can be transferred if the account holder finds a Futures Commission Merchant willing to accept a transfer of the positions in the account without collateral. As required by law, account transfers must be complete by 5:00 pm EST on Friday, November 11, 2011, at which time the process of an orderly liquidation of non-transferred accounts will begin.


MFGI customers who would like to transfer positions without collateral should email their request to MFGITransfer@hugheshubbard.com


By seeking Court approval on an emergency basis, the Trustee, in coordination with the CFTC, SIPC, and the CME and other exchanges, has been able to transfer approximately 17,000 customer accounts with open commodities positions, along with approximately $1.55 billion in collateral, which is approximately 60% of the collateral that had been associated with these positions at the time of the bankruptcy. This Court-authorized bulk transfer was the maximum relief available under the law and the circumstances, and it averts mandatory liquidation of the transferred positions under governing CFTC rules.


MF Global Inc., by court order, is undergoing a liquidation process. MF Global Inc. is currently being wound down. The broker-dealer is not conducting business and will not be reorganized.


In order to protect their transferred positions, MF Global Inc. customers who have been transferred should consider posting collateral if that action is requested by the transferee Futures Commission Merchant (FCM). As an alternative, these former MF Global Inc. customers can request to have accounts liquidated.


The Trustee has begun an independent and thorough investigation. At this time, we can't know how long the investigation will take or how long it will be before we are able to begin to return additional assets to customers. We do know there is an apparent shortfall at MF Global Inc. My obligations under the law are to preserve assets and identify and marshal other assets to maximize the estate in a manner that is fair to all customers.


The Trustee does not have the authority to transfer commodity accounts except in bulk, as granted by the Bankruptcy Court. If an individual's account has not been transferred as part of the bulk transfer, that account can be transferred if the individual finds an FCM and transfers the account without collateral.


Additionally, we have identified approximately 400 security accounts that were active at MF Global and we are attempting to find brokers where those accounts can be bulk transferred back to customers.


To the extent that accounts are not transferred, the Trustee will be establishing a claims process, which will need to be approved by the Court, for the customers and creditors of MF Global Inc. consistent with his duties under SIPA to identify and marshal assets available to satisfy customer claims and to maximize the estate for all stakeholders in an orderly and fair process.


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PROGRESS REPORT OF THE SIPA TRUSTEE OF MF GLOBAL INC.

Date: November 7, 2011

On October 31, 2011, James W. Giddens was appointed as the trustee ("Trustee") in the liquidation of MF Global Inc. ("MFGI") pursuant to the Securities Investor Protection Act ("SIPA"), by the Honorable Paul A. Engelmayer, United States District Court for the Southern District of New York, as set forth in the Order commencing liquidation. A copy of the Order is available on the Trustee's website, www.mfglobaltrustee.com, which was quickly set up to communicate with customers and others about the unfolding developments.


The Trustee and his staff are working closely with the Securities Investor Protection Corporation (SIPC), the Commodities Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and also with the Chicago Mercantile Exchange (CME) and other exchanges. During the first week of the liquidation process, the Trustee quickly made significant progress in fulfilling his mandate to protect the customers of MFGI:


  • On November 2, the Trustee obtained an emergency order from the Bankruptcy Court for the Southern District of New York authorizing the transfer of thousands of commodity customer account positions to other futures commodities merchants and worked with Designated Clearing Organizations and regulators through the first week and weekend of the liquidation to effectuate the transfers.

  • By November 4, the end of the first week of the liquidation, the Trustee had established a process for the potential transfer of MFGI's customer securities accounts to another SIPC member firm.

  • On November 7, the Trustee filed a motion requesting authority to use a streamlined process to return misdirected wires sent to MFGI post-bankruptcy.

  • As of November 7, approximately 17,000 customer account positions and approximately $1.5 billion in customer account funds have been transferred to other future commodities merchants. The Trustee and his advisors continue to facilitate the transfer of additional customer account positions and customer account funds.

  • On November 4, the Bankruptcy Court issued a Memorandum Opinion confirming the Trustee's subpoena and authority to conduct an independent investigation.

  • The Trustee's investigation into the business and affairs of MFGI is underway and will be thorough, deliberate and independent. The Trustee's staff has secured MFGI's offices in New York and Chicago. The Trustee has retained Ernst & Young forensic accountants, while Deloitte has been retained to assist in account transfers, claims processing and administration of the liquidation process.


The Trustee will be establishing a claims process, which will need to be approved by the Court, for the customers and creditors of MFGI consistent to his duties under SIPA to identify and marshal assets available to satisfy customer claims and to maximize the estate for all stakeholders in an orderly and fair process.


Immediately after MFGI's bankruptcy filing, the Trustee established a website and a call center to facilitate communications with the customers and creditors of MFGI. The Trustee expects that the website, www.mfglobaltrustee.com, will be the primary method by which he will communicate important information and notices to customers and creditors of MFGI. Additionally, the Trustee plans to issue interim reports similar to the reports that have been issued in other major SIPA liquidations, such as the SIPA liquidation of Lehman Brothers Inc.


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NOTICES

NOTICES TO FORMER MFGI CLIENTS

NOTICES TO INDUSTRY PROFESSIONALS


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FREQUENTLY ASKED QUESTIONS



OVERVIEW

What happened to MF Global Inc.?

What is the status of the liquidation of MFGI?

DISTRIBUTIONS

Why haven’t I received my distribution?

ADDRESS UPDATES

How do I update my address?

CLASS ACTION

Class Action

TAX FORMS
I did not receive a 2013 Form 1099 (or a Form 1042-S) for my MF Global account.

I did not receive a 2012 Form 1099 (or a Form 1042-S) for my MF Global account.

How can I determine the purchase price of a security?

How can I obtain additional copies of my 1099/1042-S?

My Form 1099/1042-S has the wrong social security number or address. Can you send a corrected form?

How do I obtain information regarding prior year Form 1099 activity?

THE TRUSTEE

Who is assisting the Trustee in his efforts?

What is the status of the Trustee’s investigation into the apparent deficiency in customer funds?

MF GLOBAL HOLDINGS LTD.

What is the status of the liquidation of MF Global Holdings Ltd.?

THE SECURITIES INVESTOR PROTECTION CORPORATION

What is SIPC?

OVERVIEW

  • What happened to MF Global Inc.?
  • On October 31, 2011, the United States District Court for the Southern District of New York entered an Order granting the application of the Securities Investor Protection Corporation (SIPC) finding that the customers of MF Global Inc. were in need of the protection afforded by the Securities Investor Protection Act (SIPA). James W. Giddens was appointed trustee for the liquidation of the business of MF Global Inc. (Trustee), and Hughes Hubbard & Reed LLP was appointed as counsel to the Trustee.


    MF Global Inc., by court order, is undergoing a liquidation process. MF Global Inc. is currently being wound down. The broker-dealer is not conducting business and will not be reorganized.



  • What is the status of the liquidation of MFGI?
  • The deadline has now passed for the submission of all claims to the Trustee for the liquidation of MF Global Inc. (MFGI).

    On April 4, 2014, the Trustee began making 100 percent distributions to fully satisfy all claims of former MFGI public customers. These distributions are ongoing and will take several weeks to complete. With this distribution, a total of $6.7 billion will have been returned to over 26,000 securities customers and commodities futures customers. Click here for further information.


DISTRIBUTIONS

  • Why haven’t I received my distribution?
  • On April 4, 2014, the Trustee began 100 percent distribution to fully satisfy all claims of former MFGI public customers. This distribution is ongoing and will take several weeks to complete. However, to ensure that there are no delays in receiving your distribution, please make sure you have completed the following steps.


    1. Have you submitted your signed revised DECLARATION AND RELEASE form?

    To receive further distributions of the allowed amount you must sign and return the revised Declaration and Release form that was mailed to you. You will not receive distributions of the amount allowed unless you execute and return the Declaration and Release.



    If you have not submitted the Declaration and Release, you may request a copy of your form to sign and return by emailing MFGIRelease@epiqsystems.com and include the following in your request:

    • Claim Name
    • Address
    • Claim Number
    • MF Global Inc. Account Number
    • Method of receipt (via email or regular USPS mail)


    2. Have you submitted your signed AMENDMENT TO DECLARATION AND RELEASE form?

    On January 31, 2013, the Court overseeing the liquidation of MFGI entered an order approving a settlement agreement between the Trustee and the MFG UK Joint Special Administrators. The Order requires that customers with an allowed claim for foreign futures property (30.7 property) with a value greater than $12,000 execute a rider that supplements the Declaration and Release initially included with the notice of determination.

    Although you may have already executed the Declaration and Release, you will not receive further 30.7 distributions of the amount allowed unless you also execute and return the rider.

    If you have not submitted the Amendment to Declaration and Release, you may request a copy of your form to sign and return by emailing MFGIRelease@epiqsystems.com and include the following in your request:

    • Claim Name
    • Address
    • Claim Number
    • MF Global Inc. Account Number
    • Method of receipt (via email or regular USPS mail)


    3. Is the address on your claim record current?

    The Trustee’s professionals will mail distributions to the address listed on the claim record. Click here to access the online claims register to view your current address.




ADDRESS UPDATES

  • How do I update my address?
  • To update your claim record address, please send us a signed request letter. The signature must be an original signature. If you are requesting on behalf of your company, the letter needs to be on your company’s letterhead. The letter must include the following information:


      In the RE: line:
      • MF Global Inc.
      • Claim number(s)
      • MF Global Inc. Account number(s)

      In the body of the letter:
      • Last 4 digits of your SS# or EIN (required for US residents)
      • Name on the claim record (yours or your company’s, as applicable)
      • The old address, the new address, and the direction to have your address updated to the new address
      • You must also include a day time phone number and if possible an email address so that our processing department may contact you if there are any questions about your records.

    Requests without a signed letter will not be processed.

    You may send the letter:

    By email (scanning and attaching the letter): MFGlobalClaims@epiqsystems.com

    OR

    By regular mail to:

      Epiq Bankruptcy Solutions LLC
      Attn: MF Global Inc. Address Updates
      757 Third Avenue, 3rd Floor
      New York, NY 10017

    Please feel free to contact a representative of the Trustee at 1.888.643.2169 (inside the United States) or 212.837.6038 (outside the United States) if you have any questions regarding your address.


CLASS ACTION

The Customer Representatives are customers of and former commodities account holders at MFGI who have brought class actions against former officers, directors, and other employees of MFGI or MF Global Holdings Ltd. and other third parties. The Customer Representatives have been named as interim lead plaintiffs for the putative class of similarly situated former customers of and former commodities account holders at MFGI in the United States District Court of the Southern District of New York.


For further information on the class actions, please contact Lead Counsel for Plaintiffs:


      BERGER & MONTAGUE, P.C.
      Merrill G. Davidoff
      1622 Locust Street
      Philadelphia, Pennsylvania 19103
      (215) 875-3000


      ENTWISTLE & CAPPUCCI LLP
      Andrew J. Entwistle
      280 Park Avenue, 26 Floor West
      New York, New York 10017
      (212) 894-7200


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TAX FORMS

  • I did not receive a 2013 Form 1099 (or a Form 1042-S) for my MF Global account.
  • If you have not received a Form 1099 or 1042-S for 2013 and you believe you should have received such a Form, please contact the Trustee’s hotline at 1-888-236-0808 or send an email to mfgitrustee@hugheshubbard.com. Please include a contact phone number where you can be reached. Please note that the Trustee’s staff cannot provide copies of such Forms for years prior to 2011 or provide tax advice.


  • I did not receive a 2012 Form 1099 (or a Form 1042-S) for my MF Global account.
  • The Trustee did not issue Forms 1099 for 2012 to former account holders because no reportable activity occurred during the 2012 calendar year. The Trustee prepared and mailed all required Forms 1099-MISC for vendors and independent contractors for tax year 2012. The Trustee prepared and mailed all required Forms 1099 and 1042-S for tax year 2011. If you did not receive a Form 1099 or 1042-S for years prior to 2013, and you believe you should have received such a Form, please contact the Trustee’s hotline at 1-888-236-0808 or send an email to mfgitrustee@hugheshubbard.com. Please include a contact phone number where you can be reached. Please note that the Trustee’s staff cannot provide copies of such Forms for years prior to 2011 or provide tax advice.


  • How can I determine the purchase price of a security?
  • If you have questions regarding your tax basis in a security, you should review prior account statements, including purchase information, and consult your tax advisor.


  • How can I obtain additional copies of my 1099/1042-S?
  • The Office of the Trustee can mail you an additional copy of a Form 1099/1042-S that was issued in 2013, 2012, or 2011, but cannot provide forms for prior years. Please contact the Trustee’s hotline at 1-888-236-0808 or send an email to mfgitrustee@hugheshubbard.com to make this request. Please include a contact phone number where you can be reached.


  • My Form 1099/1042-S has the wrong social security number or address. Can you send a corrected form?
  • Yes. Please contact the Trustee’s hotline at 1-888-236-0808 or send an email to mfgitrustee@hugheshubbard.com to make this request. Please include a contact phone number where you can be reached.


  • How do I obtain information regarding prior year Form 1099 activity?
  • According to the IRS website, a taxpayer who filed a return in a past year that included information from a W-2 or a 1099 can request copies of the return, including the attachments, from the IRS, by filing a Form 4506 together with a fee of $57. A taxpayer who filed a return in a past year can get a “transcript” of a return, including the information on any attachments, from the IRS by filing a Form 4506-T; the IRS states that there is no fee for a transcript.


    The link below provides instructions and further information on both Forms:


    http://www.irs.gov/taxtopics/tc156.html

    The link below provides instructions and a further link to an online request process for obtaining a transcript:


    http://www.irs.gov/Individuals/Order-a-Transcript


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THE TRUSTEE

  • Who is assisting the Trustee in his efforts?
  • The Trustee has assembled a professional staff consisting of experienced legal counsel, forensic accountants and other expert consultants with liquidation experience. The Trustee’s staff includes professionals from Hughes Hubbard & Reed, all of whom have broker dealer liquidation experience. They are overseeing and supervising Deloitte consultants and Ernst & Young forensic investigative accountants and consultants, and a staff of former MF Global employees which is being reduced as the liquidation progresses and the need for their services is less acute. This team shares vast experience in commodities brokers and stockbroker liquidations, forensic accounting, and technology consulting.


    In addition, the Trustee’s expert staff has also been working side-by-side with the SEC, SIPC, the CFTC, the CME, and other self-regulatory organizations and derivative clearing organizations. The staff of these organizations has been providing additional industry knowledge and assisting the Trustee in structuring and completing the bulk transfers. The Trustee has also welcomed suggestions and advice from other knowledgeable parties in the futures, options and commodity industries.


  • What is the status of the Trustee’s investigation into the apparent deficiency in customer funds?
  • The Report of the Trustee’s Investigation and Recommendations dated June 4, 2012 can be found here.



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MF GLOBAL HOLDINGS LTD.

  • What is the status of the liquidation of MF Global Holdings Ltd.?
  • These Frequently Asked Questions relate to the MF Global Inc. SIPA Proceeding only. If you are seeking information regarding the Chapter 11 case, please refer to www.mfglobalcaseinfo.com.




THE SECURITIES INVESTOR PROTECTION CORPORATION

  • What is SIPC?
  • The Securities Investor Protection Corporation, or SIPC, was created by Congress in 1970. When a brokerage firm is closed due to bankruptcy or other financial difficulties, SIPC steps in to work with the Trustee to, within certain limits, return customers' cash, stock and other securities as quickly as possible. SIPC may also provide cash advances within proscribed limits if needed to help satisfy customer claims.


    Customers share pro rata in the funds held by the brokerage firm for securities customers. To the extent that distribution is less than 100%, SIPC may advance up to $500,000 for the valid claims of each securities customer, including up to $250,000 for claims for cash deposited for the purpose of purchasing securities. Assets held in or margin associated with commodities accounts are not eligible for SIPC protection.


    SIPC is not the FDIC. SIPC is not intended to bail out investors when the value of their stocks, bonds and other investments falls for any reason. Instead it replaces missing stocks and other securities that may be missing where it is possible to do so.


    For more information about SIPC, you can visit its website at www.sipc.org.


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CLAIMS FORMS AND INSTRUCTIONS

The deadline has now passed for the submission of all claims to the Trustee for the liquidation of MF Global Inc. (MFGI).

The MFGI Notice of Commencement and MFGI General Creditor Claim Form and Instruction Packet are below. Please note these are for reference only; the deadline for submission of claims has now passed.





MESSAGE REGARDING CLAIMS PROCESS

Date: December 2, 2011

This week, counsel for the Trustee liquidating MF Global Inc. met with several dozen former MF Global Inc. customers and customer groups, as well as their counsel. Through this productive meeting, the Office of the Trustee identified some common questions on the claims process. Below, please find information that addresses these common questions. In addition, more information pertaining to filling out the Commodity Customer Claim Form is available here. The Trustee's goal is to make claims forms as efficient to access and to complete as possible for all former customers of MF Global Inc.


Key Claims Filing Instructions
  • Commodities customer claims must be received by the Trustee on or before January 31, 2012.

  • Customers are encouraged to fill out claims forms to the best of their ability with as much information as possible. More is better, but missing or incomplete information does not mean the claim will be automatically denied.

  • Claims forms are required to be consistent with CFTC regulations. The Trustee has worked with claimants to make the forms as customer friendly as possible, and the Trustee's staff will continue to work with customers directly to assist in filing their forms as needed.

  • The Trustee has mailed paper forms to former customers of MF Global Inc., in addition to placing PDF claims forms on the Trustee's website.


Determinations

Claims will be reviewed promptly, and once the Trustee's staff has finished reviewing your claim, a determination will be made regarding your claim. You will then receive a determination letter in the mail. The Trustee's staff will work with claimants at all stages of the process, including answering any questions about a determination, in an attempt to reach a fair conclusion. It is not the wish or desire of the Trustee to engage in litigation with individual claimants.


Assets in Foreign Depositories

The Trustee has made important and significant progress in identifying and returning assets of the US segregated customer property, now under the Trustee's control, for customers who were trading in US positions. Many customers, in addition to trading through US derivative clearing organizations, also held positions in foreign commodities traded through foreign depositories, which are called secured 30.7 accounts.


It is estimated that these accounts could have a value of less than one billion US dollars. These assets are now under the control of foreign bankruptcy trustees, and the Trustee will use all means available to gain control of those assets held by foreign entities for the return to customers. However, it has been the Trustee's experience that recovery of these foreign assets may take significant time. At this time, the Trustee does not have control of these assets and it is not known when, or if, the assets will become available to the Trustee. However, all customers of MF Global Inc. are strongly urged to file, before the January 31, 2012 deadline, any claim they believe they have for US and/or foreign positions they believe they had in their accounts.


GENERAL CREDITOR CLAIMS

The Trustee has received over 5,000 general creditor claims, which will be reviewed separately after the customer claims process is complete and, in keeping with SIPA and §704(a)(5) of the Bankruptcy Code, at such time the Trustee has reason to believe that there will be a meaningful distribution to general creditors.


The Trustee, by and through his Claims Agent, EPIQ Systems, maintains Customer and General Creditor Claims Registers (the “Registers”). Parties-in-interest may obtain online access to review the General Creditor Claims Register and filed-claim forms by clicking here and the Customer Claims Register and filed-claim forms by clicking here. Parties should take notice of the disclaimer and notes associated with the claims registers.


MISDIRECTED WIRES

The Trustee has already started to receive and investigate requests for the return of funds misdirected into MFGI bank accounts. On November 22, 2011, the Court entered an Order Approving and Authorizing the Establishment of Procedures to Return Misdirected Wires.


The Order authorizes procedures to increase the efficiency and reduce the costs of administering the return process, including: (a) returning a substantial number of transfers of misdirected funds of $250,000 or less without the need of obtaining further court approval; (b) surcharging new misdirected funds claims a processing fee equal to one percent (1%) of the return amount up to a maximum surcharge of $5,000 per return; and (c) disallowing and expunging misdirected funds claims in which the party requesting a return fails to provide information or execute required documentation within sixty days of a final written notice by the Trustee requesting such information or documentation. The protocol for the return of misdirected wires and request form for same can be found below:




The Trustee notes that wire transfers specifically intended for MFGI should continue to be sent directly to accounts at MFGI. He appreciates all parties' prompt attention to these matters.


TRUSTEE NEWS RELEASES

SIPC NEWS

OTHER NEWS

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RECENT COURT FILINGS


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CONTACT

GENERAL INQUIRIES REGARDING
THE SIPA PROCEEDING

INQUIRIES REGARDING LETTERS
OF DETERMINATION

CALL CENTER

US: 1-888-236-0808
INTERNATIONAL: 1-503-597-5173

EMAIL

MFGITrustee@hugheshubbard.com
DETERMINATION CALL CENTER

US: 1-888-643-2169
INTERNATIONAL: 1-212-837-6038

MEDIA INQUIRIES

KENT JARRELL
PHONE: (202) 230-1833
EMAIL: kjarrell@apcoworldwide.com

URL: