The Commodity Futures Trading Commission has supported the Trustee’s application for an expedited claims process in the MF Global, Inc. (MFGI) liquidation, and authorised the transfer of funds for customers with “cash-only” accounts outside of the claims process.
In a statement filed with the US Bankruptcy Court for the Southern District of New York, the Commission expressed support for putting in place mechanisms for the prompt initiation of claims for all MFGI customers and the transfer of 60% of customer funds that have been frozen in “cash-only” accounts.
The Trustee’s request, if approved by the Bankruptcy Court, will facilitate the transfer of “cash-only” customer accounts to other futures commission merchants, where the funds will be accessible to the customers. The Commission, in a letter to the Trustee, authorised the transfer by finding that it was appropriate and in the public interest.
“My number one priority at this point is to work with the Trustee and facilitate an equitable distribution of funds to all MFGI customers as quickly as possible,” says CFTC Commissioner Jill E Sommers (pictured).
