MF Global - U.S. Update as of November 7, 2011

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SIPC Trustee Takes First Steps to Thaw Frozen Customer Securities Accounts

On November 4, 2011, the SIPC Trustee took his first steps toward transferring frozen customer securities accounts held by MF Global Inc. ("MFGI") when he announced that he will be accepting proposals for the transfer of all customer securities accounts of MFGI (the "Securities Accounts") to another member of the Securities Investor Protection Corporation. This action is in addition to the steps the Trustee took last week to transfer certain segregated commodities accounts from MFGI to other futures commission merchants.

All prospective transferees of the Securities Accounts are required to sign a nondisclosure agreement prior to conducting due diligence on the Securities Accounts and must be prepared to exhibit their financial capability to fund their proposals and handle the Securities Accounts going forward through, inter alia, current FOCUS Reports, balance sheets, and bank references. Upon receipt of executed nondisclosure agreements, the Trustee will notify prospective transferees of the procedures for making proposals.

Please see full article below for more information.

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Published In: Bankruptcy Updates, Business Organization Updates, Civil Procedure Updates, Consumer Protection Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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