Ultimately, the report details the events and finances of the firm over the last couple years of its existence and concludes its business changed dramatically after Corzine took over as the firm’s CEO. It was under the personal direction of Corzine that MF Global began trading European sovereign debt securities, and that led to the firm’s demise.
Additionally, Giddens also filed a number of recommendations to regulators that came as a result of his investigation, including:
- Abolish the alternative calculation method and implement a requirement to segregate an amount in excess of 100% of customer funds.
- Eliminate the segregated versus secured distinction in Commodity Futures Trading Commission (CFTC) Regulation 30.7, ensure consistency of customer protection when trading overseas, and monitor compliance abroad closely.
- Create a protection fund for futures and commodities customers under a certain threshold, and implement suitability standards for customers of Futures Commission Merchants (FCMs).
- Provide for civil liability for officers and directors in the event of a commodities segregation shortfall.
- Consider simplifying some CFTC rules for bulk transfers and claims in an FCM liquidation proceeding.
- Enact legislation explicitly authorizing Trustee standing on behalf of customers.
Finally, the trustee filed a motion for the bankruptcy court to approve counsel’s fees through February 2012, which totaled approximately $17 million