MF Global Singapore appoints KPMG as provisional liquidators
MF Global Singapore (MFGS) on Tuesday appointed provisional liquidators from KPMG to oversee the winding down of the company.
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By Ryan Huang / Avelyn Ng
01 November 2011
MF Global Singapore (MFGS) on Tuesday appointed provisional liquidators from KPMG to oversee the winding down of the company.
This is according to a statement released by the Monetary Authority of Singapore (MAS).
MAS said that the provisional liquidation is intended to safeguard the interest of customers and achieve equitable treatment for all creditors after the brokerage filed for bankruptcy in the United States.
Other MF Global entities in the UK and Australia have also been placed into administration.
The Singapore Exchange (SGX) has also announced that customers who have traded on SGX can contact MFGS to close their positions or transfer their derivative positions to other clearing members. SGX said that it will continue to facilitate the orderly transfer of customers’ positions on the SGX.
MFGS has established a hotline (6866 6796) to answer customers’ queries. The company will also contact stakeholders with information specific to their trading accounts.
MAS also said it will work closely with MFGS and the provisional liquidators to achieve an orderly winding down and equal treatment of all stakeholders. MAS added that it will continue to monitor the situation closely and issue statements to keep all stakeholders informed of developments.
Meanwhile, some Singaporeans with money tied to MF Global sought to withdraw funds on Tuesday. Over the day, about 60 investors visited the offices of MF Global at One George Street, concerned about the security of their money.
Those that Channel NewsAsia spoke with were direct account holders, investing in a derivative product called Contract for Differences (CFDs). They were seeking reassurances over their accounts and some wanted to withdraw their cash balances.
According to investors who visited the offices on Tuesday morning, the situation became heated and they were shouted at by MF Global staff.
Those investors who were keen on cashing out were given a withdrawal form. This option was taken up by those who had positive balances. However, those with still-open trading positions or negative balances were reluctant to do so.
The MF Global bankruptcy also spilled over to investors trading through other brokerages serving as clearing houses, such as Kim Eng, AmFraser and CIMB.
These investors told Channel NewsAsia that their accounts had been frozen and the online trading platform suspended. This meant that they could not close their positions, leaving them vulnerable and unable to react to market movements.
According to dealers that Channel NewsAsia spoke to, MF Global had blocked access to the brokerages.
Various regulators across Asia also scrambled to suspend the operations of MF Global’s various local units.
Japanese authorities froze the 5,000 operational accounts to secure customer deposits and the Tokyo Stock Exchange suspended the brokerage from clearing any securities.
In Hong Kong, the exchange said the local unit had sought voluntary suspension and is winding down outstanding futures positions “in an orderly manner”.
In Australia, the country’s stock exchange suspended the trading of grain futures and options to limit any impact. But in India, despite the concerns elsewhere, the local unit said its operations have not been hurt and that it remains “financially strong”.
-CNA/ac