MF Global Inc. will now begin making final distributions to its customers to satisfy its obligation of full restitution for $1.212 billion in losses sustained by customers of MF Global when the company failed in 2011.
The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) and Division of Market Oversight (DMO) today issued an extension of time-limited no-action relief to LCH.Clearnet Limited
The regulations address issues that arise in connection with a typical intermediated derivatives clearing model. However, Nadex’s clearing model is different in that it features non-intermediated clearing of transactions in fully-collateralized products.
The CFTC obtained a federal court consent Order against Defendant MF Global Inc. (MF Global) requiring it to pay $1.212 billion in restitution to customers of MF Global to ensure customers recover their losses sustained when MF Global failed in 2011.
CFTC charges MF Global Inc., MF Global Holdings Ltd., Former CEO Jon S. Corzine, and former employee Edith O’Brien for MF Global’s unlawful misuse of nearly $1 billion of customer funds and related violations.