The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of November 22, 2011.

In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.

MF Global shortfall doubles to $1.2bn
By Gregory Meyer and Kara Scannell in New York – Financial Times
The estimated hole in MF Global’s customer accounts has doubled in size to $1.2bn, astonishing traders as the investigation into the broker’s failure enters its fourth week.

Is There A SIPC In The Futures?
By Donald L. Horwitz, Contributing Editor – MarketsReformWiki
Not to be too blunt, but the collapse of MF Global is a disaster for the futures industry. This is the same industry that has been able to stand before Congress every time there has been a market crash (1987, 1994, 2008, to mention a few) and say proudly that the customer segregation system works well. Now, however, that is not necessarily the case. And, more importantly, this turn of events is happening just as the regulatory agencies, Congress and the industry are trying to implement the final set of rule changes mandated by the Dodd-Frank Act of 2010.

NFA – MF Global Statement
Over the past few weeks, National Futures Association (NFA) has been assessing how our member firms have been impacted by the MF Global Inc. bankruptcy. While NFA was not the designated self regulatory organization (DSRO) for MF Global, Inc., we have been in contact with all of our Members that had accounts with MF Global, Inc., including introducing brokers (“IB”). NFA staff is working closely with its Member firms to assess their specific situations and address their needs as best as possible. For example, when accounts were transferred out of MF Global, Inc., NFA responded to many requests from IBs to assist them in locating their customer accounts. NFA staff also worked with a number of MF Global guaranteed IBs and their new guarantors to assist with a smooth transition.

With MF Global Case Growing, Agency Expands Enforcement
Ben Protess – NY Times
The Commodity Futures Trading Commission’s enforcement chief, David Meister, plans to create two enforcement squads — one that will examine fraud and manipulation, and the other to take aim at wrongdoing in the swaps market.

MF Global Shortfall May Exceed $1.2 Billion, Trustee Says (4)
By Tiffany Kary – Bloomberg
Nov. 21 (Bloomberg) — MF Global Inc.’s shortfall in U.S. segregated customer accounts may exceed $1.2 billion, said the trustee overseeing a liquidation of the failed brokerage run by former New Jersey Governor Jon Corzine.

MF Global trustee says $1.2B or more missing
AP via Yahoo! News
The court-appointed trustee overseeing MF Global’s bankruptcy says up to $1.2 billion is missing from customer accounts, double what the firm had reported to regulators last month.

CME grapples with MF Global’s missing $1.2B
By David Roeder – Chicago Sun-Times
The trustee sorting out the bankruptcy of MF Global Holdings Ltd. on Monday doubled the estimate of possible lost funds in its customer accounts to $1.2 billion as CME Group Inc. came under intense criticism for its role in the debacle. John Roe, co-founder of a coalition that’s working to document traders’ funds and get the money back through bankruptcy court, said, “CME bears a great deal of responsibility for what happened here.”

CFTC Takes Account Segregation ‘Very Seriously’, Official Says
By Joshua Gallu – Bloomberg
The U.S. Commodity Futures Trading Commission, which is investigating what happened to about $600 million in client money missing from failed brokerage MF Global Holdings Ltd., takes laws requiring the segregation of customer accounts “very seriously,” the agency’s top enforcement official said.

MF Global: The mess that keeps getting messier
CNN Money
As the questions and conflicts in the MF Global bankruptcy pile up, investors are pooling their resources to get a seat at the table.

Canadian Derivatives Clearing Corporation Statement On MF Global Canada
Press Release
Canadian Derivatives Clearing Corporation (CDCC) announced today that it has completed the transfer and closure of all remaining open positions as part of the execution of normal default management processes related to the bankruptcy of MF Global Canada.

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