SUMMARY OF WHAT THIS POSTING IS ALL ABOUT:
The SIPC Trustee in MF Global matter has taken the first step to “thaw” frozen customer accounts by requesting that interested broker-dealers express an interest in taking MF Global’s book of securities accounts (i.e., a bulk transfer).
Interested broker-dealers would take this first step by signing a Non-Disclosure Agreement and starting the due diligence process of reviewing MFG’s book and providing the Trustee with information about that broker’s qualifications to service accounts (remain solvent!), etc. on a going forward basis.
On November 4th, MF Global’s SIPA Trustee announced that he will be accepting proposals for the transfer of all customer securities accounts of the Debtor (the “Accounts”) to another member of the Securities Investor Protection Corporation.
Prospective transferees must sign a Nondisclosure Agreement to conduct due diligence regarding the Accounts, which may be obtained by contacting Joshua Zalasky at (212) 837-6713 or email@example.com. Prospective transferees should be prepared to exhibit their financial capability to fund their proposals and to handle the accounts going forward through, inter alia, current FOCUS Reports, balance sheets, and bank references. The Trustee will notify prospective transferees who return Nondisclosure Agreements of the procedures for making proposals.
The official notice of the Trustee is available here.
Reed Smith LLP
Good day. Good Proposing. TSR