At long last, customers of MF Global Inc. (MFGI) will be made whole as James W. Giddens, Securities Investor Protection Corporation (SIPC) trustee for the liquidation of MFGI, announced today the final distribution bringing customers to 100%, “fully satisfying all claims.”
With this distribution that begins on April 4, a total of $6.7 billion will have been returned to over 26,000 mainly commodities futures customers. The distributions are expected to take several weeks.
James Koutoulas, co-founder of the Commodity Customer Coalition (CCC), says, “While MF Global was one of the most catastrophic events in the history of the futures industry, I'm elated that after two-and-a-half years customers are finally going to be made whole.”
The CCC was founded by Koutoulas and John Roe principal of BTR Trading (both customers of MF Global) shortly after MF Global declared bankruptcy when it became apparent that there was a lack of urgency in the way the SIPC trustee, who was largely unfamiliar with Futures industry regulation, approached the task of getting former MF Global customers their money back.
Initially, the trustee had set-up what would have been a lengthy claims process that would have taken several month for customers to get significant portions of their money back after securing a return of 60% of customer funds that were held at the CME clearinghouse.
The CCC protested and helped to expedite more frequent distributions.
Futures first spoke to Koutoulas, CEO of Typhon Capital Management, a few days after the bankruptcy filing when he claimed to represent approximately 200 former MFGI customers. His goal was, “To give a voice to the thousands of customers who don’t have a seat at the table,” and he sought to be appointed to the MF Global Bankruptcy Creditors’ Committee. He did not get that appointment but when the soon to be created CCC grew from 200 to more than 5,000 in a matter of weeks and eventually 38,000, bankruptcy Judge Martin Glenn took notice and ordered the trustee to work with Koutoulas and the CCC.