Press Release 11/17 1:44pm CST

#PFGBest Customers

Are you a customer of PFGBest? The CCC is working with regulators and monitoring the court on behalf of PFG customers. At this stage, we are advising customers to gather their statements and prepare for a claims or account transfer process.

Stay tuned to our website for more information.

Commodity Customer Coalition
125 South Wacker Drive, STE 300
Chicago, IL 60606
www.commoditycustomercoalition.org
info@commoditycustomercoalition.org
November 18, 2011 FOR IMMEDIATE RELEASE
CONTACT: John L. Roe (jroe@btrtrading.com) 312-933-6564
CCC Agrees with CFTC's O'Malia & Judge for Quick Asset Release, Outlines Plan to Trustee

Commodity Customer Coalition (“CCC”) agrees with bankruptcy Judge Martin Glenn and the CFTC Commissioner Scott D. O'Malia that the plan to release of MF Global customer assets must be much quicker than the one laid out in the Trustee's original plan for a
claims process. Commissioner O'Mailia said though he applauded actions taken by the court to return customer funds, he was concerned that the expedited claims process was not quick enough, noting "the livelihood of market participants has been dangling
by a thread for over two weeks."

CCC attorney James Koutoulas, along with co-counsel from Barnes and Thornburg, are outlining a plan right now for the Trustee which will make possible Commissioner O'Mailia and Judge Glenn's desire for a fast claims process that quickly distributes customer
assets to their rightful owners. The plan was developed by Susan Osmanski, a compliance consultant with CCS Capital Management, in conjunction with members of the CCC.

Highlights of the plan include:
• Instruct Sungard (GMI--MF Global's third party back office statement system) to run a month-to-date statement for all
accounts, including inactive accounts, to establish amount of assets in client's name;
• Add claim information to the bottom of statements and send them to clients in the form of a 'negative consent' letter;
• Give clients 5 days to agree to the balance or respond to the trustee; Customers whose account statements reflect
deductions from checks or wire transfers which were returned but never credited back to their accounts would be able tosubmit evidence for the error during this window;
• Enlist the participation of Introducing Brokers as intermediaries to aid in facilitation of claims;
• Facilitate electronic transmission of these claims forms and return assets immediately;
• Allow customers holding physicals a separate process allowing transfer to another FCM or liquidation and transfer.

Mr. Koutoulas issued the following statement regarding the plan:
While this is a preliminary plan, it seeks to cover all MF Global customers in the quickest manner possible. We will work with the Trustee and the court to fine tune it over the coming days. Co-counsel Vincent "Trace" Schmeltz added: "This will allow the maximum amount of customer assets to flow out with the least error possible. Time is of the essence and the world is watching."
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The Commodity Customer Coalition now represents over 7,000 former MF Global customers whose funds have been frozen by the
SIPC Trustee. For more information, or to schedule interviews, please contact John L. Roe (jroe@btrtrading.com, 312-933-6564

#MFGlobal Customers

Are you a customer of MF Global? The CCC formally represents more than 200 clients in the bankruptcy process of MF Global on a pro bono basis, and informally represents thousands more in the public domain.

Get the latest news on #MFGlboal.

About James Koutoulas 209 Articles
Co-Founder and lead attorney of the CCC, CEO of Typhon Capital Management and Typhon Securities.

7 Comments

  1. As many of you know, MF Global is still showing positions that were liquidated by exchanges last week and also LME positions. Also, any distributions that have been credited to customer accounts at their new FCM have not been reflected on customer statements. Is there anyone left at MF to properly adjust the customer accounts?

  2. The % distributed should be based on the total account value, independent of whether it is cash or not. In reality, all of our accounts are “cash” or “cash equivalent” all of the time, with some held by the clearing house and some remaining in the segregated brokerage accounts, depending on how many positions need to be supported by “good faith” margin. In the futures markets, we haven’t actually bought or sold anything, just promised to do so in the future. ECONOMICALLY, OUR ACCOUNTS ARE ALL CASH ALL THE TIME!

    The pro rata distributions should equitably be based on the “TE” and “PBL” amounts on the MF statements of November 9, after all open positions had been moved and/or liquidated. ALL COMMODITY ACCOUNTS ARE EFFECTIVELY ALL CASH ALL OF THE TIME, and it is unfair to make a distinction on the basis of whether any open positions existed as of Oct. 31. Many of us were partially or totally locked out of trading and could not liquidate positions that day.

  3. Excellent……all accounts should look like the final one I received from MF on November 9, i.e. no positions/all cash. From that basis on, EVERYONE SHOULD BE TREATED EQUALLY.

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