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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: