Published On: Tue, Nov 1st, 2011

Japan FSA Administrative Actions on MF Global FXA Securities

Based on both i) the current situations of MF Global Holdings Limited. and its affiliated companies and ii) their relationship with MF Global FXA Securities, Ltd. [hereinafter referred to as “MFGFXA”] in terms of capital and transactions, it is necessary to fully ensure that creditors and investors are not damaged by the outflow of MFGFXA’s assets to overseas affiliated companies, triggered by the announcement of MF Global Holdings Limited.

Therefore, Kanto Local Finance Bureau issued administrative orders to MFGFXA on 31st October, 2011 based on Article 56-3 and Article 51 of Financial Instruments and Exchange Act.

(1) Order of retention of assets within Japan

MFGFXA has to retain certain assets within Japan equivalent to all liabilities excluding liabilities to overseas (including guarantees).
(2) Business Improvement Order
o i) Accurately identify investors and assets deposited from investors.
o ii) Take necessary measures to assure deposited assets from investors and not to in appropriately consume the company’s assets.
o iii) Take full measures for investor protection, with considering equitable treatment among investors.
o iv) Try to keep every investors informed appropriately about retention of deposited assets, and to consider proper correspondence to investors.

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