Australian (ASX) Stock Market Forum

MF Global Australia - What are you doing?

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I received my preliminary close out statements last Wednesday and they (I had 3 CFD accounts with MFGA) and of the two positions I had open, the close out prices looked to be in order. One of the positions related to corporate action (capital raising specifically) and they honoured that transaction as well.

So I have confirmed the closing balance using the electronic claim link (which worked without problems). Now I just hope that a smooth court process will lead to a speedy partial payment.

Has anyone noticed anything unusual or contentious about their accounts or positions?

To pifou-Syd:

Good on you guys for starting the support group. I've signed up to your site but I haven't provided the detail details or joined the facebook group. While I support the intent of what you guys are doing, I will be happy to throw my real support behind you when there are real actions to be supported.

I think joining the facebook group is a pretty big step as people may not want to use their real identify publicly in this matter. So I would suggest not to use facebook as your primary communication channel (or at least use something else in addition to the facebook group).
 
I agree with skc, I support the group but will not signup to twitter or facebook.

I sent my support of the MGFA-CSG submission to the treasury on Friday night.

How is it that clients of OTC derivative providers are not informed that there is an inquiry into the use of client monies and segregated accounts? Every account holder should have been notified so that a general consensus could be established. Of course the providers want to continue to make the rules and the interests of clients are not considered.

Another example of government/regulator ineptitude.
 
skc said:
I received my preliminary close out statements last Wednesday and they (I had 3 CFD accounts with MFGA) and of the two positions I had open, the close out prices looked to be in order. One of the positions related to corporate action (capital raising specifically) and they honoured that transaction as well.

So I have confirmed the closing balance using the electronic claim link (which worked without problems). Now I just hope that a smooth court process will lead to a speedy partial payment.

Has anyone noticed anything unusual or contentious about their accounts or positions?

To pifou-Syd:

Good on you guys for starting the support group. I've signed up to your site but I haven't provided the detail details or joined the facebook group. While I support the intent of what you guys are doing, I will be happy to throw my real support behind you when there are real actions to be supported.

I think joining the facebook group is a pretty big step as people may not want to use their real identify publicly in this matter. So I would suggest not to use facebook as your primary communication channel (or at least use something else in addition to the facebook group).
Click to expand...

Thank you skc

1) regarding statements: to my knowledge, most people have commented on Facebook that what their statements reflected what they expected.

2) regarding registering on the web site - thank you to all for joining. The more the better.
The association will have several type of actions:
a) information to the members
b) seeking answers from deloitte - once we can demonstrate that we represent a significant share of clients (this is typically measured by numbers and by amount of funds), it should be easier to have access to them directly.
c) if other actions are required, we'll then seek members support for launching such actions

About 40% of clients have given us the full detail of their accounts - 60% have decided not to. It's a bit of a chicken and egg situation. The association will have more power to act it has large numbers, and members are more likely to support the association if it's powerful. This being said, I believe we should represent around 10% of the funds with the current level of subscription (making an educated guess for the 60% who have not indicated their balance on the website).

I can also say that this information is kept as securely as we possibly can, and is available only to Ross and myself (and the programmer who built the website).

3) Facebook: a lot of people have expressed their concerns regarding joining Facebook, essentially for protecting their privacy. We understand this. We will use direct email communication to members in addition to the information shared on Facebook.
I would like to clarify a few things:
- you don't have to give any personal information on Facebook
- you don't have to use your real name on Facebook
- if you already have an account on Facebook, you don't have to use this account (ie your personal account) to join the group
- the Facebook group is a "private" group: it means that members have to submit a request which is approved by the Administrator (who can also remove members), and the conversations exchanged in the group can only be accessed by members (they don't spam all your friends)

I don't want to push anyone on Facebook, I am not a FB junkie, but FB is a free tool that allow us to share information and facilitate exchange of information, reactions, suggestions among members. The association founding group are all volunteers, like everyone else we have limited time, we paid for what had to be done, but our resources are not endless. Facebook was a practical choice. It is comparable to this forum that allows easy dialogue among members. We have now more than 60 members on FB and the level of activity has picked up n the last couple of days.

If anyone has further questions regarding joining Facebook without having to share their personal information, feel free to email the association at info.mfga.csg@gmail.com
 
pifouSyd said:
Thank you skc
Click to expand...

Thanks for the detailed response. I understand your chicken-and-egg problem.

I never thought about setting up a separate account to join the facebook group... I will do that just so I can be more informed about the developments and what others are thinking.
 
JIM Taig, of Seismo , sent potential creditors an email today, outlining how to give him the ability to put representative numbers under his authority (proxy for your account) so that he may have the numbers to be allowed to sit in on the next creditors meeting AND get allowed to sit in on the panel that will decide how to proceed. It is important that he get to sit in on this panel....so that he knows exactly what is happening. The more clients he represent, the better chance he is allowed to sit in on what is going on.
Very complicated he says....and we need a voice.
I suggest you contact Seismo to get a copy of the proxy form and explicit instructions as to how to give him your creditor proxy.....
He has asome skin in the game.......so he will be working for you.
Contact
trade@seismo.net.au
Proxies must be in by tomorrow March 1 ........4 pm

sincerely,

Merc
 
I wonder if DBA is going to give us (CFD-Clients) interest on the money they were witholding & now decided to return?
 
I see that some of the execs who were running this sham of a company could still be getting a nice bonus payment out of it :confused:

:2twocents

Seems to me that if these people had done there job in the first place, Clients might never have been left high and dry, and now looks like the executives rank ahead of them and will be able to dip into the pot with what remains of the frozen accounts for a fat bonus cheque, F@cking joke, not to mention another kick in the teeth for the small investor if you ask me :banghead:

http://www.businessweek.com/news/20...saw-company-may-get-bonuses-if-court-approves
 
Its all starting to look a heck of better now considering the doom & gloom some posters
said would happen to us MF Global clients!

A part of the article in the SMH about investors wanting to buy out australian MF Clients !

VULTURE investors are offering to buy out Australian clients of failed broker MF Global, the company's liquidator has confirmed.

Deloitte partner Chris Campbell said he did not know who made the approaches, which came from a Britain-based broker.

The approaches follow on from a bidding war for MF Global client positions in the United States, where rival banks are offering up to 91 ¢ in the dollar.

''I'd be surprised if it is truly 90 ¢, but if they offered me 90 ¢ on the US money that we're trying to recover, I'd have to take it to my committee [of creditors] for approval,'' Mr Campbell said.
 
hatton01 said:
Its all starting to look a heck of better now considering the doom & gloom some posters
said would happen to us MF Global clients!
Click to expand...

I appreciate your optimism hatton01, do you know something I dont know?
We are currently 4.5 months after we lost our money, not a cent has been paid out. Delloitte going to court to try to get access client money and segregated accounts.
I have no experience in court matters but they seem to adjourn matters at the tip of a hat... 30 odd million(?) in futures funds are being disputed by MFG UK.

Are we likely to get any funds distributed in the near future?

I'm not trying to entice fear but I feel in the dark about what may happen on Monday.
 
edman79 said:
I appreciate your optimism hatton01, do you know something I dont know?
We are currently 4.5 months after we lost our money, not a cent has been paid out. Delloitte going to court to try to get access client money and segregated accounts.
I have no experience in court matters but they seem to adjourn matters at the tip of a hat... 30 odd million(?) in futures funds are being disputed by MFG UK.

Are we likely to get any funds distributed in the near future?

I'm not trying to entice fear but I feel in the dark about what may happen on Monday.
Click to expand...

I am with you Edman. This whole administration process has been a complete nightmare for account holders.

If someone offers me 70c in the dollar I will accept straight away.
 
skc said:
I am with you Edman. This whole administration process has been a complete nightmare for account holders.

If someone offers me 70c in the dollar I will accept straight away.
Click to expand...

Really?

If someone offered me 70c in the dollar for MFG I'd suddenly be very suspicious of information asymmetry! Probably bid 70.5c :)
 
skyQuake said:
Really?

If someone offered me 70c in the dollar for MFG I'd suddenly be very suspicious of information asymmetry! Probably bid 70.5c :)
Click to expand...

Really.

Remember my situation is slightly different. With a great deal of good fortune, I got just under 90% of my capital out when MFG's share price first crashed on Tuesday (they went into administration on Monday the following week).

So for me leaving 30% of what is left (which is still very substantial) is a small price to pay for moving on.
 
I'm not sure what they know that we don't.

One thing probably to consider is that if a 3rd party buys a big chunk of claims, then
1) this 3rd party will probably find it easier to be represented in the legal process
2) has a common and simple objective (instead of the potentially conflicting objectives of each of the initial clients); this objective is not to achieve 100%, but to make the max profit in the shortest amount of time (ie recovering 80c if they paid 70c)

If we assumed for argument's sake that such a 3rd party managed to buy 100% of the claims (hypothetically), then that party would sit with Deloitte and find an agreement with Deloitte without having to go through a lengthy court process.

What's killing us is the perceived/induced/real clients division and the risk (perceived/induced/real) for the Administrators to get personally sued. Once the risk is unequivocally removed, there is no more justification for a lengthy legal process.
 
The reasons for my comments are simple.
We have gone from "you not going to see a dime" , "the administrator is going to get all of the interest" etc to investors wanting to buy mf global client accounts!
The money has been found in the US & in the CFD pool I think we are probably close to 95% of the funds have now been returned.
I am sure in time the UK will stop trying to get there hands on local futures funds sitting at the ASX.
I am also aware there is at least one large investor being represented in Court by one of the best in the business so I think we will come out of this a lot better than what folks expected.
 
Any news from yesterdays, court appearance, for the pooling groups ect ?
I hope it would have just been a judge giving his decree, or is one of those long winded affairs?
 
The news is not good mate in terms of seeing the distribution happening any time soon.
The hearing date has been set to the end of June 2012.

The laws in place for client seg funds need to be changed. The current Fed Govt who I helped to elect have done nothing. They have been sitting on there hands for many years.

As Gerry Harvey said last night on lateline, both sides are just as useless & really waste taxpayers money.
 
feel sorry for all the mf global customers. I was going to become a client jeez lucky i didnt. What a complete mess. Its always the same, the administrators, legal crap artists and the rest will make a killing. Just like the lehman brothers scandal."PricewaterhouseCoopers has earned record £322m from Lehman collapse".

Hope all you guys get your money back...

Atleast some good news

http://www.bloomberg.com/news/2012-...n-in-mf-global-u-k-client-cash-kpmg-says.html

cheers
 

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