Bloomberg News

Deloitte to Administer MF Global Insolvency in Australia

November 01, 2011

(Updates with comment from Deloitte in third paragraph.)

Nov. 1 (Bloomberg) -- Deloitte Touche Tohmatsu’s Australian unit has been named as administrator for MF Global Holdings Ltd.’s companies in the country following the firm’s filing for bankruptcy protection in the U.S.

MF Global Securities Ltd. and MF Global Australia Ltd. were placed in administration and their trading activities were halted, the Australian Securities & Investment Commission said in a statement today on its website. Brokerone Pty is also in administration, Deloitte said in an e-mailed statement today.

Deloitte is working “to resolve what are complex operations in the interests of the companies’ clients and creditors,” the administrator said. “The total process will take some time.”

MF Global, the New York-based holding company for the broker-dealer, listed debt of $39.7 billion and assets of $41 billion in Chapter 11 papers filed in U.S. Bankruptcy Court in Manhattan. The company describes itself as “a leading broker- dealer” in markets including commodities, futures and options, providing access to more than 70 exchanges, according to its website.

ASX 24, the Australian Stock Exchange’s 24-hour trading platform, has suspended grain and wool futures trading to preserve the integrity of the market, ASIC said.

Deloitte has taken control of the three MF Global companies in Australia and all their operations, the administrator said.

Clients’ positions are being reconciled and it will likely be necessary to close out most, if not all, of those positions, Deloitte said.

--Editors: Terje Langeland, Lena Lee

To contact the reporter on this story: Joe Schneider in Sydney at jschneider5@bloomberg.net

To contact the editor responsible for this story: Joe Schneider at jschneider5@bloomberg.net


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