MF Global: non-US clients caught in cross-border collateral trap

Mouse thinking of stealing some cheese from a mousetrap

Non-US futures clearing clients of MF Global found their collateral trapped in cross-border limbo last month following the firm's collapse, and were asked to stump up fresh assets if they wanted to port their cleared business to another firm – not all were able to do so, and some had to liquidate their positions as a result, dealers say.

"There certainly were clients who didn't have the margin to avoid the liquidation of their positions, and we didn't entertain the prospect of allowing positions

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