Bloomberg News

LCH Moves Segregated Funds in MF Global to U.K. Administrators

November 29, 2011

Nov. 29 (Bloomberg) -- LCH.Clearnet Group Ltd., the largest interest-rate swap clearinghouse, passed all segregated client money caught in the collapse of MF Global U.K. Ltd. to the broker’s administrators, enabling KPMG LLP to return the funds.

The clearinghouse completed the transfer of more than 300 client positions to a clearing member of their choice, London- based LCH.Clearnet said in a statement today. MF Global’s 14.7 billion euros ($20 billion) of fixed-income positions have been liquidated, with a few exceptions. The process of managing the remaining positions is “virtually complete,” the company said.

“We have managed the situation within margin and without recourse to the default fund,” Ian Axe, chief executive officer of LCH.Clearnet, said the statement.

MF Global Holdings Ltd., the New York-based parent company, sought bankruptcy protection in the U.S. last month after bets on European debt soured. MF Global’s U.K. unit followed the parent into administration. The broker’s British customers’ funds were frozen and put in a client money pool.

MF Global’s U.K. administrators have said they plan to return some money to the collapsed broker’s clients by March. KPMG, MF Global’s U.K. administrator, has asked clients to submit claims for money and assets held by the broker by March 30.

--Editors: Edward Evans, Steve Bailey.

To contact the reporters on this story: Nandini Sukumar in London at nsukumar@bloomberg.net;

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net;


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