James L. Koutoulas has formalized his group advocating on behalf of former MF Global customers and brokers and given it a name: The Commodity Customer Coalition, which is more than 2,500 strong and growing. And on Monday Koutoulas filed an objection to JP Morgan’s interim order that he claims could put JP Morgan interests ahead of MF Global customers whose funds are still frozen by the liquidation trustee.
The objection states, “Were this Court to allow any party to have an interest superior to customer segregated funds, it would provide a loophole in the protections which are the bedrock of commodity trading. This Court should only provide for the use of Cash Collateral which protects customer funds as Congress, the CFTC, CME, and hundreds of thousands of commodity traders have, for over 100 years, believed to have been the case.”
Koutoulas has argued that the liquidation trustee should return all frozen customer assets while investigating the $633 million, approximately 11/6%, shortfall in customer segregated funds.
In a release he wrote, “we will continue to respectfully serve as an advocate on behalf of all MF Global customers to all parties involved in this case, as well as Congress, and press for the immediate release of 100% of all customer property that was held in segregated accounts.”