MF Global's bankruptcy is being taken in stride by clearing houses around the world.
Eurex Clearing announced the successful winding down of the futures commission merchant after terminating the former clearing member and subsequently liquidating corresponding positions. Exposures were at all times fully covered by collateral placed by MF Global and there was never a need to draw on the Clearing Fund.
MF Global was licensed as a Clearing Member for the markets Eurex Exchange, Eurex Repo, European Energy Exchange, Xetra and Irish Stock Exchange.
LCH.Clearnet is the appointed clearing house for the Hong Kong Mercantile Exchange and is managing all of MF Global and associated client positions for the London Metal Exchange. A source familiar with the latter said that the unwind is proceeding in a calm and orderly albeit manual manner.
CME Clearing announced it is holding "substantial excess margin collateral" from MF Global and therefore continues to be in a strong financial position, both with respect to MF Global and more generally.
"MF Global's customer positions on CME Group exchanges were and continue to be substantially over-collateralised at CME Clearing. As of today, the proprietary positions of MF Global have been liquidated with no adverse market impact, leaving a substantial part of that collateral to be applied to MF Global's obligations at CME," the clearing house wrote.
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