Published On: Tue, Nov 1st, 2011

SFC Issues Restriction Notice on MF Global Hong Kong

The Securities and Futures Commission (SFC) today approved the issue of a Restriction Notice on MF Global Hong Kong Limited (MFGHK) which directs an orderly closing out or transfer of existing futures and options positions in the Derivatives Clearing and Settlement System (DCASS) of HKFE Clearing Corporation Limited according to clients’ instructions (Note 1 and 2).

Under the notice, MFGHK is also allowed to settle outstanding cash market transactions in accordance with the General Rules of the Central Clearing and Settlement System (CCASS) and the CCASS Operational Procedures.

MFGHK has been directed to immediately assert its rights over any clients’ money or other receivables held by any overseas person.

The SFC maintains close contact with MFGHK in relation to the implementation of the provisions of the Restriction Notice.

The purpose of the Restriction Notice is to achieve an orderly resolution of all remaining clients’ positions and settlement obligations, whilst directing MFGHK to take all necessary steps to preserve the integrity of clients’ assets.

MFGHK is required to contact all of its clients as soon as practicable to enable an orderly closing out or transfer to other brokers of their positions.

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