MF Global accounts moving, hearing tomorrow

The trustee for the liquidation of MF Global is reporting that he is moving forward in coordination with the Commodity Futures Trading Commission (CFTC) and securities authorities with the bulk transfer of MF Global accounts approved last night.

Trustee James W. Giddens has filed a motion asking for authority to issue subpoenas "for the production of documents and the examination of the debtor’s current and former officers, directors and employees, and other persons.”

The motion asks for a hearing to be conducted by telephone conference to consider the motion be held before bankruptcy judge Martin Glenn tomorrow Nov. 4, 2011 at 11:00 a.m. (EDT) or as soon thereafter as counsel may be heard. Any party wishing to participate by telephone should contact CourtCall at 1-866-582-6878 to request a reservation to appear telephonically.

According to Giddens commodity customers will be notified by the relevant Futures Commission Merchant (FCM) transferee if and when their accounts have been transferred.

According to reports, that process has already begun but because not all collateral is being transferred with the positions, many customers holding positions will need to post additional margin with their new clearing brokers. Tomorrow is a particularly critical day for this to occur as the Unemployment Situation Report for October will be come out 7:30 CDT. This report often causes a spike in volatility in financial markets.

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