LCH.Clearnet has completed the transfer of over 300 MF Global UK client positions to the clearing member of the client’s choice. The operation has involved managing client positions across multiple markets including the London Stock Exchange, LIFFE, LME, Nodal, HKMEx, OTC energy, in multiple asset classes including cash equities, commodities, metals, financial and energy derivatives.
All segregated client monies have now been passed to MF Global UK Ltd’s (MF Global) administrator KPMG, enabling KPMG to return funds to clients. The final tranche was returned on Tuesday 29 November.
MF Global’s fixed income positions, which had a combined nominal value of over EUR14.7 billion, have been successfully sold, with the exception of a very small number of residual positions, with no recourse to the default fund. The process of managing the outstanding positions of MF Global is virtually complete.
Ian Axe, Chief Executive, LCH.Clearnet, says: “I am very pleased with the way our team has handled a very complex and difficult resolution over multiple markets and multiple asset classes at a time of extreme market stress and been able to preserve value for clients and continuity of service. I am also delighted that we have managed the situation within margin and without recourse to the default fund.”