* LCH completed client transfers to other brokers
* Clearer has returned outstanding monies to KPMG
By Luke Jeffs
LONDON, Nov 29 European clearing house
LCH.Clearnet said on Tuesday it had moved all of its clients'
positions with MF Global to new brokers in a positive
step for the defunct trading firm's former customers.
LCH said it had successfully transferred over 300 client
positions to new brokers, meaning these outstanding orders could
now be actively traded again after they were frozen on Oct. 31
when MF Global collapsed.
"I am very pleased with the way our team has handled a very
complex and difficult resolution over multiple markets and
multiple asset classes at a time of extreme market stress," said
Ian Axe, Chief Executive of LCH.Clearnet.
LCH.Clearnet also said in an emailed statement it had
returned to MF Global's administrator KPMG all the outstanding
client monies held by LCH, enabling KPMG to start returning the
much-needed cash to the relevant firms.
The LCH update came a day after the administrator said MF
Global clients would be able to start formally claiming monies
frozen at the firm from Dec. 8 this year.
The moves are a boost to MF Global clients who have become
increasingly frustrated by the lack of progress recovering the
estimated $1.2 billion of client cash and assets frozen at the
former futures broker.
Earlier this month KPMG took the unusual step of apologizing
to MF Global customers and assuring them it was transferring
client positions "wherever possible".
The administrator also moved to reassure MF Global investors
when it said 10 days ago it would make interim distributions of
money to clients before it had finally settled all positions.
MF Global had been one of the biggest U.S. futures
brokerages but the firm, led by former United States Senator Jon
Corzine, failed after a bad $6.3 billion bet on European
sovereign debt spooked counterparties and investors.