LCH.Clearnet clarifies role in MF Global UK administration

Apr 10, 2012 | 06:18 AM |

The administration process at MF Global was made more complicated by the fact that the firm went into default during the day, LCH.Clearnet said on Wednesday April 4. “It adds complexity to the process because not everything is in its final place for the day. I can’t actually recall another one that’s happened intraday,” Marc Huglin, director of commercial services at LCH, said. “There are obviously trades at various stages throughout the day, so there are things that have been traded in the morning that aren’t necessarily in the places they should be finally.” This created questions over who would continue to need access to which systems on the London Metal Exchange and when. MF Global was a ring-dealing member of the London Metal Exchange when it went into default on October 31. “As soon as the default is declared, we would withdraw system access until we’ve....