MF Global placed into administration

The Australian Securities and Investments Commission (ASIC) has announced that MF Global Group has been placed into administration, affecting a number of companies in Australia.

The companies affected by the announcement are MF Global Australia Limited, MF Global Securities Australia Limited, and Brokerone Pty Limited.

Deloitte Corporate Reorganisation Group Partners Chris Campbell, David Lombe and Vaughan Strawbridge were yesterday appointed voluntary administrators of 

According to ASIC the activities affected by the announcement are equities, futures trading, futures clearing, and contracts for difference (CFDs). The regulatory body was also advised by ASX 24 yesterday that grain futures and wool futures would not open and all trading halted.

"As voluntary administrators, we have taken control of the assets of the three companies and begun the task of assessing the positions of each, including their over the counter derivative positions such as CFDs," said Campbell.

"We are commencing a process to reconcile all client positions as at the date of appointment to determine monies owed to each client."

"The total process will take some time, but we will advise customers of their position as soon as possible," he said.

ASIC's release follows the announcement made by MF Global Holdings Limited and its finance subsidiary, MF Finance USA Incorporated that it would be filing for a Chapter 11 Bankruptcy Petition in the United States Bankruptcy Code.