Letter Sent to CME Chairmen and CFTC Commissioners

Dear All,

This Wednesday, November 30, I will be objecting to JPMorgan’s order for the use of cash collateral in the MF Global Holdings, Ltd. case on behalf of the Commodity Customer Coalition. The CCC has over 8,000 members. I have been formally engaged to represent approximately 200M in assets held at MF Global, and informally represent many multiples of that.

In their order, JPM attempts to gain super-priority rights over customers. Additionally, the way JPMorgan’s order is written, it gives MF Global Holdings, Ltd. enough leeway where it could potentially continue engaging in the very same risky trades that bankrupted the firm. Either of these are unacceptable.

To counter this, we will be asking the judge to throw out this order and assert that customers have super-priority over the assets in MF Global Holdings, Ltd. If he does this, the trustee can simply liquidate some of the approximately $40B in assets held by that company and use it to pay back all customers in full immediately.

This argument will be much more convincing if the CFTC and CME unequivocally support it in court on Wednesday. Doing so will show that the CFTC and CME are truly serious about protecting customers, show the industry that both organizations are able to protect their assets, and that the segregated account system worked (albeit imperfectly).

I am available to discuss this further and hope to see your support in court.

Best regards,

James L. Koutoulas, Esq.

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