MF Global

[parsley]

On December 23, 2011, Vice-President Urban C.
Lehner made the following comments in DTN
Editorial:

When the full story of MF Global is finally written,
it could easily occupy 1,500 pages.

The commodity broker's demise raises countless
issues: The adequacy of current regulations on
the use of segregated customer funds; The role
of regulators, auditors and credit-rating agencies;
The lobbying of MF Global's CEO, Jon Corzine.

And more: The lack of an insurance fund for
futures contracts similar to the one protecting
securities accounts; The ranking of customers vs.
other creditors in bankruptcy proceedings; The
willingness of banks to finance ag hedgers'
margin calls if customer accounts are as risky as
MF Global's collapse makes them look.

[buzz]

MF gambled on European debt and lost. If they
had kept their risk capital and their client's money
separate they would not have created such a
terrible mess. Corzine was a greedy prick.

[parsley]

MF Global is the mother of ICE in Canada.

[buzz]

Thanks Parsley.
Thatdoes not give me much comfort.

[sumdumguy]

I would much rather use licensed and bonded
grain dealers. Once, just once we used an agent
to do the logistics on grain deals. Pretty soon his
grubby little fingers started speculating on
currency exchange with our grain cheques.
Guess what? Just like Corzini he flopped and the
little prick is working in the grain industry today.
Seems some people have poor memories.

[bduke]

Parsley... Have you researched the history of the Intercontinental Exchange (ICE) and
MF Global in SEDI ?

I thought ICE started in 2002 in Atlanta... MF Global is an old English trading Co... Man
Financial.

Your concerns regarding the fallout from the MF bankruptcy are also worrying to me.

Hypothecation is limited in the US to 140% and the banks believe the accounts to be
their collateral.

In London Eng there is no limit... and MF did a lot of business in London.

This mess will likely take years to resolve... so much money and so many debtors...
and so many lawyers.

IMHO as in the structured credit meltdown, the algorithms... probabilities of default..
have proven inaccurate. Old models... new dynamics.... much greater values at risk.

I share your trepidation.

Cheers... Bill

[cottonpicken]

For christ sakes we missed an opportunity,a complete
frickin vaccum and nobody to fill the void.

pox pox pox

[ward.toma]

The ICE exchange is not like MF Global. MF Global made trades on behalf of customers and for its own account.

ICE provides the infrastructure required for trades to happen. It is the electronic version of the futures and options trading pits that existed in Winnipeg or at the CME or CBOT etc.

http://en.wikipedia.org/wiki/IntercontinentalExchange

www.theice.com

Disclaimer: The Alberta Canola Producers Commission is a customer of ICE. We purchase the canola futures market data feed for our grain price webpage at www.canola.ab.ca.

To learn more about futures investigate one of our canola marketing courses. More information at www.canola.ab.ca.

Ward Toma
General Manager
ACPC

[parsley]

Here is what ICE said in a quarterly securities
filing:

“Subsequent to September 30, 2011, we
borrowed $203.0 million under the Revolving
Credit Facilities for liquidity purposes for three of
our clearing houses in preparation for the
management of the insolvency of MF Global. Of
the $203.0 million borrowed, $150.0 million was
borrowed under the reserved amount for ICE
Clear Europe, $50.0 million was borrowed under
the reserved amount for ICE Clear U.S. and $3.0
million was borrowed under the reserved amount
for ICE Clear Canada. The $100.0 million
reserved for ICE Clear Credit remains reserved
and is the only amount remaining as reserved
capacity for our clearing houses. The clearing
houses may not need to use the borrowed funds
and when we repay the amounts borrowed for
our three clearing houses, the reserved amounts
for ICE Clear Europe, ICE Clear U.S. and ICE
Clear Canada will be replenished based on the
corresponding amount that has been repaid.”
unquote ICE
It's always prudent to have information, isn't it.
Pars

[parsley]

I did take the time to jot down directly from MF
Global's website when it was still, er, brimming
with names and promise:

Just to review:

MF Global, MF Global FX, and Global Canada
Online are Trade names for MF Global Canada
Co.

MF Global Canada Co. Is a wholly owned
subsidiary of MF Global Holdings Inc.

MF Global Canada Co. approved participation of
Montreal Exchange and a clearing participant and
Registered futures commission Merchant of ICE
Futures Canada

MF gave permission. Kinda like a parent does.
Pars

[parsley]

I did take the time to jot down directly from MF
Global's website when it was still, er, brimming
with names and promise:

Just to review:

MF Global, MF Global FX, and Global Canada
Online are Trade names for MF Global Canada
Co.

MF Global Canada Co. Is a wholly owned
subsidiary of MF Global Holdings Inc.

MF Global Canada Co. approved participation of
Montreal Exchange and a clearing participant and
Registered futures commission Merchant of ICE
Futures Canada

MF gave permission. Kinda like a parent does.
Pars

[ward.toma]

They still do not do what MF did. They are providing a function like the NYSE, the TSE, NASDAQ and the CME.

[ward.toma]

I'm sorry, I can't follow you. Who did MF giver permission to? It's subsidiaries to trade on various exchanges like ICE and Montreal? Of course that would have happened.

[parsley]

Court green lights transfer of MF Global Canada
accounts to RBC

Tuesday, November 15, 2011
DAVID PARKINSON
The former customers of bankrupt futures
brokerage house MF Global Canada Co. are
about to regain access to their money and
trades, after an Ontario court approved the
transfer of the bulk of their accounts to RBC
Dominion Securities - promising an end to two
weeks of limbo for roughly $400-million of
investor holdings.

Court-appointed bankruptcy trustee KPMG Inc.
and RBC separately confirmed Monday that the
Ontario Superior Court of Justice had approved
the bulk transfer of all MF Global Canada
customers' futures, equity and fixed-income
accounts to RBC Dominion Securities, the arm of
Royal Bank of Canada that includes futures
trading and clearing services.

RBC said it will begin contacting the account
mholders on Tuesday to "expedite access to
their accounts."

"The transfer of positions will take place over the
next few days. We endeavour to provide former
MF Global Canada clients access to their
account by the end of the week," said RBC
spokeswoman Bev MacLean.

The accounts that RBC will assume represent
the bulk of assets investors held through MF
Global Canada, which were estimated by
authorities last week at roughly $400-million. The
only accounts not moving to RBC are foreign-
exchange accounts - which an MF Global
Canada source described as small, retail spot-
market currency accounts that are largely in cash
and represent a minor part of the firm's business.

MF Global Canada's client accounts have been
essentially frozen since Nov. 1, when Canada's
industry regulator, the Investment Industry
Regulatory Organization of Canada (IIROC),
suspended the company's trading privileges in
the wake of the Oct. 31 bankruptcy of the
company's U.S. parent, MF Global Holdings Ltd.

On Nov. 4, the Canadian Investor Protection
Fund (CIPF) obtained a bankruptcy order for MF
Global Canada, paving the way for the
appointment of KPMG as trustee to, among other
things, locate customer assets and arrange for
them to be transferred to another financial
institution.

The process was complicated, however, by the
confusion and regulatory roadblocks arising from
the bankruptcy proceedings of the U.S. parent. At
one point, Canadian clients' accounts residing
with CME Clearing - the clearing house of big
U.S. futures-market operator CME Group Inc. -
were inadvertently transferred to another U.S.
clearing institution, and had to be recovered.

InterContinental Exchange (ICE), a major global
futures-exchange and clearing-house operator,
also reported Monday that all MF Global Canada
accounts traded through ICE Futures Canada
and cleared by ICE Clear Canada have been
either transferred to other clearing institutions or
closed. A spokesman for ICE, which operates
Winnipeg's canola and barley futures exchange
and clearing house, indicated that the transfer
was part of KPMG's process to restore customer
accounts.

"The substantial majority of customer positions
were transferred to alternative clearing
participants at the request of customers, and the
balance of open positions were closed by the
clearing house," ICE said in a news release."

[ward.toma]

Nice cut and paste. ICE did what all exchanges do when this happens; transfer open accounts to a new merchant as per orders from customers and close empty ones. It does not explain your comment that MF Global is the mother of ICE in Canada.