Statement from the Office of the Trustee for the Liquidation of MF Global Inc. (Press Release)

Trustee Press Release Regarding UK Administrators' Position

The U.S. trustee for the liquidation of MF Global Inc., reported that the Joint Special Administrators of MF Global UK Limited, the UK broker-dealer affiliate of MF Global, dispute the classification under UK law of approximately $600 to $700 million in US commodities claimant funds that were purportedly held as segregated assets for US customers dealing in foreign futures. In the Trustee's view, these funds were segregated for US customers who traded on foreign exchanges and, thus, should be returned to those customers. "I am disappointed in the UK administrators' position," Giddens said.

The funds represent assets associated with foreign positions, known as Rule 30.7 secured funds, which in the Trustee's view belong to US customers of MF Global Inc. who traded on foreign exchanges; the ultimate recovery of these foreign assets is not certain and may take more time.

• Analysis by Cadwalder: MF Global UK Enters Special Administration Regime

For more information about this document, you may contact one of the following Cadwalader attorneys: Steven D. Lofchie, Mark Ellenberg, Athena Eastwood, Christopher Updike, Assia Damianova, and Robert Zwirb

Cross References: CEA Section 4d; CFTC Rules 30.7 Part 190; Lofchie's Guide to CPO/CTA Regulation: Chapter 12, Insolvency.