SIPC Trustee Appointed for MF Global, Inc.

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On October 31, 2011, the Securities Investor Protection Corporation ("SIPC") filed an application with the United States District Court for the Southern District of New York seeking a declaration that the customers of MF Global Inc. ("MFGI") "are in need of the protections available under the Securities Investor Protection Act of 1970" ("SIPA"). MFGI is the US broker-dealer subsidiary of MF Global Holdings, Ltd., which, along with MF Global Finance USA Inc., filed for chapter 11 bankruptcy protection on October 31, 2011 in the US Bankruptcy Court for the Southern District of New York. The District Court granted SIPC's petition and referred the matter to the Bankruptcy Court. James W. Giddens, who performed a similar role for Lehman Brothers Inc., was appointed trustee for the liquidation. The Trustee will oversee the liquidation of MFGI, with a primary goal of fulfilling the SIPA mandate to satisfy public customer claims, including those related to commodities and securities, in an orderly process.

The SIPC Proceeding is in its early stages and is complicated by what the Securities and Exchange Commission and Commodity Futures Trading Commission have described as "possible deficiencies in customer segregated futures accounts held at [MF Global, Inc.]".

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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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