ASX 24 Closes Wool and Grain Futures Due to MF Global Exposure
Further to Notice 201/11 and 203/11, ASX understands that Participants and their clients will have many questions arising from the default of MF Global UK Limited as an ASX Clear (Futures) Participant and the implications for their positions and funds held with that entity.
As MF Global UK Limited is in administration, the Special Administrator (KPMG UK) needs to address these concerns directly with clients.
As a separate matter, ASX Clear (Futures) is managing its exposure arising from the default of MF Global UK Limited.
In relation to the operation of fair, orderly and transparent markets, ASX 24 is exercising its powers under the Operating Rules in the following manner:
1. Given the small percentage of Open Interest held by MF Global UK Limited in Equity Index and Interest Rate Futures and Options, there has been no impact to the fair, orderly and transparent operation of those markets.
2. Given the significant percentage of Open Interest held by MF Global UK Limited in Grain and Wool Futures and Options, these markets have been suspended in order to maintain a fair, orderly and transparent market, and to provide an opportunity for parties involved in these markets to consider the specific implications of the default of MF Global UK Limited.
ASX 24 has now determined that the Wool Futures and Options market will reopen at 10.30am on 2 November 2011, and the Grain Futures and Options market will reopen at 11.00am on 2 November 2011.