JUDGE ENGELMAYEJ 1 eN 77 5 0 

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF NEW YORK 

) 

SECURITIES INVESTOR PROTECTION ) 

CORPORATION, ) Civil Action No. 

) 

Plaintiff-Applicant, ) 

) 

v. ) 

) 

MF GLOBAL INC., ) 

) 

Defendant. ) 

--------------------------------) 

ORDER 

USDC SD~\' 

OOCUME~T 

ELECTROiSlCALLY FILED 

DOC #:-----I--r-­

DATE FILED: /o/"3ILlL::.. 

On the Complaint and Application of the Securities Investor Protection Corporation 

("SIPC"), it is hereby: 

I. ORDERED, ADJUDGED and DECREED that the customers of the Defendant, 

MF Global Inc., are in need of the protection afforded by the Securities Investor Protection Act 

of 1970, as amended ("SIPA," 15 U.S.C. §78aaa et seq.). 

II. ORDERED that pursuant to 15 U.S.C. §78eee(b)(3), James W. Giddens is 

appointed trustee for the liquidation of the business of the Defendant with all the duties and 

powers of a trustee as prescribed in SIP A, and the law firm of Hughes Hubbard & Reed LLP is 

appointed counsel for the trustee. The trustee shall file a fidelity bond satisfactory to the Court in 

the amount of $50,000. 

III. ORDERED that all persons and entities are notified that, subject to the other 

provisions of 11 U.S.C. §362, the automatic stay provisions of 11 U.S.C. §362(a) operate as a 

stay of: 

Case 1:11-cv-07750-PAE Document 3 Filed 10/31/11 Page 1 of 6

JUDGE ENGELMAYEJ 1 eN 77 5 0

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

v.

Defendant.

MF GLOBAL INC.,

Plaintiff-Applicant,

USDCSD~Y

DOCUME~T

ELECTROiSlCALLY FILED

DOC #:-----f--r--

DATE FILED: /o/?JJ III

Civil Action No.

)

)

)

)

)

)

)

)

)

)

)

----------------)

SECURITIES INVESTOR PROTECTION

CORPORATION,

ORDER

On the Complaint and Application of the Securities Investor Protection Corporation

("SIPC"), it is hereby:

I. ORDERED, ADJUDGED and DECREED that the customers of the Defendant,

MF Global Inc., are in need of the protection afforded by the Securities Investor Protection Act

of 1970, as amended ("SIPA," 15 U.S.C. §78aaa et seq.).

II. ORDERED that pursuant to 15 U.S.C. §78eee(b)(3), James W. Giddens is

appointed trustee for the liquidation of the business of the Defendant with all the duties and

powers of a trustee as prescribed in SIPA, and the law firm of Hughes Hubbard & Reed LLP is

appointed counsel for the trustee. The trustee shall file a fidelity bond satisfactory to the Court in

the amount of $50,000.

III. ORDERED that all persons and entities are notified that, subject to the other

provisions of 11 U.S.C. §362, the automatic stay provisions of 11 U.S.C. §362(a) operate as a

stay of:
A. the commencement or continuation, including the issuance or employment of 

process, of a judicial, administrative or other proceeding against the Defendant 

that was or could have been commenced before the commencement of this 

proceeding, or to recover a claim against the Defendant that arose before the 

commencement of this proceeding; 

B. 	 the enforcement against the Defendant or against property of the estate of a 

judgment obtained before the commencement of this proceeding; 

C. 	 any act to obtain possession of property of the estate or property from the estate; 

D. 	 any act to create, perfect or enforce any lien against property of the estate; 

E. 	 any act to create, perfect or enforce against property of the Defendant any lien to 

the extent that such lien secures a claim that arose before the commencement of 

this proceeding; 

F. 	 any act to collect, assess or recover a claim against the Defendant that arose 

before the commencement of this proceeding; 

G. 	 the setoff of any debt owing to the Defendant that arose before the 

commencement of this proceeding against any claim against the Defendant; and 

H. 	 the commencement or continuation of a proceeding before the United States Tax 

Court concerning the Defendant's tax liability for a taxable period the Bankruptcy 

Court may determine. 

IV. ORDERED that all persons and entities are stayed, enjoined and restrained from 

directly or indirectly removing, transferring, setting off, receiving, retaining, changing, selling, 

pledging, assigning or otherwise disposing of, withdrawing or interfering with any assets or 

61565840 -2­

Case 1:11-cv-07750-PAE Document 3 Filed 10/31/11 Page 2 of 6

A. the commencement or continuation, including the issuance or employment of

process, of a judicial, administrative or other proceeding against the Defendant

that was or could have been commenced before the commencement of this

proceeding, or to recover a claim against the Defendant that arose before the

commencement ofthis proceeding;

B. the enforcement against the Defendant or against property of the estate of a

judgment obtained before the commencement ofthis proceeding;

C. any act to obtain possession of property ofthe estate or property from the estate;

D. any act to create, perfect or enforce any lien against property ofthe estate;

E. any act to create, perfect or enforce against property of the Defendant any lien to

the extent that such lien secures a claim that arose before the commencement of

this proceeding;

F. any act to collect, assess or recover a claim against the Defendant that arose

before the commencement ofthis proceeding;

G. the setoff of any debt owing to the Defendant that arose before the

commencement ofthis proceeding against any claim against the Defendant; and

H. the commencement or continuation of a proceeding before the United States Tax

Court concerning the Defendant's tax liability for a taxable period the Bankruptcy

Court may determine.

IV. ORDERED that all persons and entities are stayed, enjoined and restrained from

directly or indirectly removing, transferring, setting off, receiving, retaining, changing, selling,

pledging, assigning or otherwise disposing of, withdrawing or interfering with any assets or

61565840 -2-
property owned, controlled or in the possession of the Defendant, including but not limited to 

denying access to, charging for access to, or refusing to cooperate with requests for access to, the 

books and records and computer and information systems, stock record and other information of 

or pertaining to the Defendant and customers' securities and credit balances, except for the 

purpose of effecting possession and control of said property by the trustee. 

V. ORDERED that pursuant to 15 U.S.C. §78eee(b)(2)(B)(i), any pending 

bankruptcy, mortgage foreclosure, equity receivership or other proceeding to reorganize, 

conserve or liquidate the Defendant or its property and any other suit against any receiver, 

conservator or trustee ofthe Defendant or its property, is stayed. 

VI. ORDERED that pursuant to 15 U.S.c. §§78eee(b)(2)(B)(ii) and (iii), and 

notwithstanding the provisions of II U.S.C. §§362(b) and 553, except as otherwise provided in 

this Order, all persons and entities are stayed, enjoined and restrained for a period of twenty-one 

(21) days, or such other time as may subsequently be ordered by this Court or any other court 

having competent jurisdiction of this proceeding, from enforcing liens or pledges against the 

property of the Defendant and from exercising any right of setoff, without first receiving the 

written consent of SIPC and the trustee. 

VII. ORDERED that, pursuant to 15 U.S.C. §78eee(b)(2)(C)(ii), and notwithstanding 

15 U.S.C. §78eee(b)(2)(C)(i), all persons and entities are stayed for a period of twenty-one (21) 

days, or such other time as may subsequently be ordered by this Court or any other court having 

competent jurisdiction of this proceeding, from foreclosing on, or disposing of, securities 

collateral pledged by the Defendant, whether or not with respect to one or more of such contracts 

or agreements, securities sold by the Defendant under a repurchase agreement, or securities lent 

61565840 -3­

Case 1:11-cv-07750-PAE Document 3 Filed 10/31/11 Page 3 of 6

property owned, controlled or in the possession of the Defendant, including but not limited to

denying access to, charging for access to, or refusing to cooperate with requests for access to, the

books and records and computer and information systems, stock record and other information of

or pertaining to the Defendant and customers' securities and credit balances, except for the

purpose of effecting possession and control ofsaid property by the trustee.

V. ORDERED that pursuant to 15 U.S.C. §78eee(b)(2)(B)(i), any pending

bankruptcy, mortgage foreclosure, equity receivership or other proceeding to reorganize,

conserve or liquidate the Defendant or its property and any other suit against any receiver,

conservator or trustee ofthe Defendant or its property, is stayed.

VI. ORDERED that pursuant to 15 U.S.C. §§78eee(b)(2)(B)(ii) and (iii), and

notwithstanding the provisions of 11 U.S.C. §§362(b) and 553, except as otherwise provided in

this Order, all persons and entities are stayed, enjoined and restrained for a period oftwenty-one

(21) days, or such other time as may subsequently be ordered by this Court or any other court

having competent jurisdiction of this proceeding, from enforcing liens or pledges against the

property of the Defendant and from exercising any right of setoff, without first receiving the

written consent of SIPC and the trustee.

VII. ORDERED that, pursuant to 15 U.S.C. §78eee(b)(2)(C)(ii), and notwithstanding

15 U.S.C. §78eee(b)(2)(C)(i), all persons and entities are stayed for a period of twenty-one (21)

days, or such other time as may subsequently be ordered by this Court or any other court having

competent jurisdiction of this proceeding, from foreclosing on, or disposing of, securities

collateral pledged by the Defendant, whether or not with respect to one or more of such contracts

or agreements, securities sold by the Defendant under a repurchase agreement, or securities lent

61565840 -3-
under a securities lending agreement, without first receiving the written consent of SIPC and the 

trustee. 

VIII. ORDERED that the stays set forth above shall not apply to: 


A any suit, action or proceeding brought or to be brought by the United States 


tAt c".,~ liAvlW7rJJ.",*41fM)(.Jlill{'z,:T('V 

Securities and Exchange Commission ("Commission") or any self-regulatory.,.prganization of 

) 

which the Defendant is now a member or was a member within the past six months; or provided 

that notice and prompt and periodic accountings are provided to the trustee; or 

B. the exercise of a contractual right of a creditor to liquidate, terminate, or 

accelerate a securities contract, commodity contract, forward contract, repurchase agreement, 

swap agreement, or master netting agreement, as those terms are defined in 11 U.S.C. §§ 1 01, 

741, and 761, to offset or net termination values, payment amounts, or other transfer obligations 

arising under or in connection with one or more of such contracts or agreements, or to foreclose 

on any cash collateral pledged by the Defendant, whether or not with respect to one or more of 

such contracts or agreements; or ~ 

t~ C. the exercise of a contractual right of any securities clearin!j a~en~y to cau~e tl}e Y 

AN -Ik.J.M/('~AII';1'1'of~ Ief1Vhh 

liquidation ofa securities contract as defined in 11 U.S.C. §741 (71; or t:Ju.n~orlf"}~ t:'UII£.~ 

II hf11dlh"" " " C/Nwt1rd~(j..,J".e-t D. 	 the exercise of a contractual right of any stockbroker or financial institution, as ~ 

~ 

defined in 11 U.S.C. §101, to use cash or letters of credit held by it as collateral, to cause the l

,­

liquidation of its contract for the loan of a security to the Defendant or for the pre-release of -­ American Depository Receipts or the securities underlying such receipts; or 

E. the exercise of a contractual right of any "repo" participant, as defined in 11 

U.S.c. §lOI, to use cash to cause the liquidation of a repurchase agreement, pursuant to which 

-4­ 61565840 

Case 1:11-cv-07750-PAE Document 3 Filed 10/31/11 Page 4 of 6

C.

defined in 11 U.S.C. §101, to use cash or letters of credit held by it as collateral, to cause the

under a securities lending agreement, without first receiving the written consent of SIPC and the

trustee.

VIII. ORDERED that the stays set forth above shall not apply to:

A any suit, action or proceeding brought or to be brought by the United States

1k~~liAvlW7rJd",*4IfMJ(.Jli'{'z,:T('V

Securities and Exchange Commission ("Commission") or any self-regulatory.,.prganization of

)

which the Defendant is now a member or was a member within the past six months; or provided

that notice and prompt and periodic accountings are provided to the trustee; or

B. the exercise of a contractual right of a creditor to liquidate, terminate, or

accelerate a securities contract, commodity contract, forward contract, repurchase agreement,

swap agreement, or master netting agreement, as those terms are defined in 11 U.S.C. §§101,

741, and 761, to offset or net termination values, payment amounts, or other transfer obligations

arising under or in connection with one or more of such contracts or agreements, or to foreclose

on any cash collateral pledged by the Defendant, whether or not with respect to one or more of

such contracts or agreements; or

t~

the exercise of a contractual right of any securities clearin!j a~en~y to cau~e t1}e Y

AN -Ik.-f.M/('~AII';11' of~ IeI1Vhh

liquidation ofa securities contract as defined in 11 U.S.C. §741 (71; or t:Ju.n~o{!f"}'l..IIh t:II)/f£.~

II hf11dlh"" " "C/Hwt1rd~(j..,J".e-t D. the exercise of a contractual right of any stockbroker or financial institution, as

l

liquidation of its contract for the loan of a security to the Defendant or for the pre-release of

American Depository Receipts or the securities underlying such receipts; or

E. the exercise of a contractual right of any "repo" participant, as defined in 11

U.S.c. §101, to use cash to cause the liquidation of a repurchase agreement, pursuant to which

,-

--

61565840 -4-
the Defendant is a purchaser of securities, whether or not such repurchase agreement meets the 

definition set forth in II U.S.C. § 101 (47); or 

F. any setoff or liquidating transaction undertaken pursuant to the rules or bylaws of 

any securities clearing agency registered under section 17A(b) of the Securities pxch~e Act of 

Ii~ [)(.(J ir~ u-J:t.Jk. G~~ ~tJc-4J (JJC54 "J IIr 

1934,15 U.S.C.§78q-l(b), o~by any person acting under instructions from and on behaIlofsuch 

.. I' folrbCO a seCUrItIes c earmg agency'; or 

;4 

G. any settlement transaction undertaken by such securities clearing agency using 

securities either (i) in its custody or control, or (ii) in the custody or control of another securities 

agency with which it has a Commission approved interface procedure for securities transactions 

settlements, provided that the entire proceeds thereof, without benefit of any offset, are promptly 

turned over to the trustee; or 

(Jf' be-o 

H. any transfer or delivery to a securities clearing agency"by a bank or other 

OrIK:tJ 

depository, pursuant to instructions given by such clearing agenc~, of cash, securities, or other 

property of the Defendant held by such bank or depository subject to the instructions of such 

orKO IV II U,JtC,j,&.IOs'l 

clearing agenc~and constituting a margin payment as defined in II U.S.C. §741 (5J; or 

I. the exercise of a contractual right, as such tenn is used in 11 U.S.C. § 555, in 

respect of (i) any extension of credit for the clearance or settlement of securities transactions or 

(ii) any margin loan, as such tenn is used in 11 U.S.C. § 741(7), by a securities clearing DankJ 

As used herein, "securities clearing bank" refers to any financial participant, as defined in 11 

U .S.c. § 101 (22A), that extends credit for the clearance or settlement of securities transactions to 

one or more Primary Government Securities Dealers designated as such by the Federal Reserve 

Bank of New York from time to time. Of..JN.,~ tf~ cvr/I'.v:Jv...1riP'! AS tSlI~,*"M 

J.s Wed I;" lIo.u.C·fJrI, I~ rwr~ ,f -e~/(iI;, uf. 

-5- CI'lll;+ .f; tJk. cjep,ltlllJ/! or ~Nrlhf f ();rYI'YfD4Jy 

~r",* "rJ ~ lI;MNAi4,/yJ,/Oiet AI rI4I",'¢i;n 1/ J}.J. CrflOI. 

61565840 

Case 1:11-cv-07750-PAE Document 3 Filed 10/31/11 Page 5 of 6

H.

turned over to the trustee; or

the Defendant is a purchaser of securities, whether or not such repurchase agreement meets the

definition set forth in 11 U.S.C. §101 (47); or

F. any setoff or liquidating transaction undertaken pursuant to the rules or bylaws of

any securities clearing agency registered under section 17A(b) ofthe Securitiespxch~e Act of

Ii')' fX.(J ir~ u-J:t.Jk. G~~ ~tr-4J {J}C54 "J IIr

1934,15 U.S.C.§78q-l(b), o~by any person acting under instructions from and on behaIiofsuch

.. I' folrbCO a seCUrItIes c earmg agency'; or

;4

G. any settlement transaction undertaken by such securities clearing agency using

securities either (i) in its custody or control, or (ii) in the custody or control of another securities

agency with which it has a Commission approved interface procedure for securities transactions

settlements, provided that the entire proceeds thereof, without benefit of any offset, are promptly

(Jf' be-o

any transfer or delivery to a securities clearing agency"by a bank or other

arlr.tJ

depository, pursuant to instructions given by such clearing agenc~, of cash, securities, or other

property of the Defendant held by such bank or depository subject to the instructions of such

orKO IVJI U,J'C.j'&.JOs'l clearing agenc~and constituting a margin payment as defined in 11 U.S.C. §741 (5J; or

I. the exercise of a contractual right, as such tenn is used in 11 U.S.C. § 555, in

respect of (i) any extension of credit for the clearance or settlement of securities transactions or

(ii) any margin loan, as such tenn is used in 11 U.S.C. § 741(7), by a securities clearing 15ankJ

As used herein, "securities clearing bank" refers to any financial participant, as defined in 11

U.S.C. § 101 (22A), that extends credit for the clearance or settlement ofsecurities transactions to

one or more Primary Government Securities Dealers designated as such by the Federal Reserve

Bank ofNew York from time to time.

61565840

O,.II'tt~ tf~ cvr/I'.v:Jv...1riP'! AS tSlI~,*"M

J.s Wed I ..... lIo.u.C·fJrI, I~ rwr~ ,f -e~/(;l;, uf.

-5-w;+ .f; tJk. cjep,ltlla or ~Nrlhf f ();rYI'YfIJ4Jy

~r",* "fJ lI;MMi4,/yJ,roiet AI rI4I",'¢i y. II JJ.J. CrflOI.
IX. ORDERED that pursuant to 15 U.S.C. §78eee(b)(4), this liquidation proceeding is 

removed to the United States Bankruptcy Court for the Southern District ofNew York. 

X. ORDERED that pursuant to 11 U.S.C. §721, the SIPA Trustee, as appointed 

herein, is authorized to operate the business of MF Global Inc. to: (a) conduct business in the 

ordinary course until 6:00 p.m. on November 3, 2011, including without limitation, the purchase 

~.J~ Ni:J~,,*-~ ClWGp$ 

and sale of securities, commodities futures and option transaction~, and obtaining credit and 

incurring debt in relation thereto; (b) complete settlements of pending transactions, and to take 

other necessary and appropriate actions to implement the foregoing, in such accounts until 6:00 

p.m. on November 7, 2011; and (c) take other action as necessary and appropriate for the orderly 

transfer of customer accounts and related property. 

XI. ORDERED that the Clerk of the Court is directed to immediately open the docket 

inthis proceeding and that this O~er be entered on the docket immediately. 

XII. ORDERED that the Clerk of the Court is directed to produce seventy-five (75) 

copies of this Order, at the regular cost, immediately upon the Order's entry onto the docket. 

XIII. ORDERED that the Trustee shall have immediate possession of the property of 

Defendant, wherever located, including but not limited to the books and records, in any form, 

and information of and pertaining to the Defendant, , and to open accounts and obtain a safe 

deposit box at a bank or banks to be chosen by the Trustee, and the Trustee may designate such 

of his representatives who shall be authorized to have access to such property 

SO ORDERED in New York, New York this 31 S~ay of tJ uto bw 

2011. 

UNI~~T~ES~~GE 61565840 -6­

Case 1:11-cv-07750-PAE Document 3 Filed 10/31/11 Page 6 of 6

IX. ORDERED that pursuant to 15 U.S.C. §78eee(b)(4), this liquidation proceeding is

removed to the United States Bankruptcy Court for the Southern District ofNew York.

X. ORDERED that pursuant to 11 U.S.C. §72I, the SIPA Trustee, as appointed

herein, is authorized to operate the business of MF Global Inc. to: (a) conduct business in the

ordinary course until 6:00 p.m. on November 3, 2011, including without limitation, the purchase

~.J~Ni:J~,,*-~ClwGP$

and sale of securities, commodities futures and option transaction~, and obtaining credit and

incurring debt in relation thereto; (b) complete settlements of pending transactions, and to take

other necessary and appropriate actions to implement the foregoing, in such accounts until 6:00

p.m. on November 7, 2011; and (c) take other action as necessary and appropriate for the orderly

transfer of customer accounts and related property.

XI. ORDERED that the Clerk ofthe Court is directed to immediately open the docket

inthis proceeding and that this O~er be entered on the docket immediately.

XII. ORDERED that the Clerk of the Court is directed to produce seventy-five (75)

copies ofthis Order, at the regular cost, immediately upon the Order's entry onto the docket.

XIII. ORDERED that the Trustee shall have immediate possession of the property of

Defendant, wherever located, including but not limited to the books and records, in any form,

and information of and pertaining to the Defendant, , and to open accounts and obtain a safe

deposit box at a bank or banks to be chosen by the Trustee, and the Trustee may designate such

of his representatives who shall be authorized to have access to such property

SO ORDERED in New York, New York this 31 S~ay of tJ litO bw

2011.

61565840

UNI~~T~ES~~GE -6-
Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 1 of 11

JUDGE ENGELMAY11 CIV 77 5 0

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

v.

Defendant.

MF GLOBAL INC.,

Plaintiff-Applicant,

SECURITIES INVESTOR PROTECTION

CORPORATION,

)

)

)

)

)

)

)

)

)

)

)

-------------)

COMPLAINT AND APPLICATION OF

THE SECURITIES INVESTOR PROTECTION CORPORATION

Plaintiff-Applicant Securities Investor Protection Corporation ("SIPC") applies to this

Court for a decree adjudicating that the customers of the Defendant MF Global Inc., are in need

of the protections afforded under the Securities Investor Protection Act of 1970, as amended, 15

U.S.C. §78aaa et~. ("SIPA"), and respectfully alleges the following:

I. SIPC is a nonprofit membership corporation created under SIPA.

2. The Defendant is a broker-dealer registered with the United States Securities and

Exchange Commission ("Commission"), a member of the Financial Industry Regulatory

Authority ("FINRA"), and a member of SIPe.

3. The Defendant has its principal office and place of business at 717 Fifth Avenue,

New York, New York 10022.

4. This proceeding arises under SIPA, more particularly §§78eee(a)(3) and

78eee(b)(2), which confers jurisdiction over this proceeding and exclusive jurisdiction over the

Defendant and its property on this Court, and upon issuance of a protective decree and
Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 2 of 11

appointment of a trustee, removal ofthe entire liquidation proceeding to the court of the United

States in the same judicial district having jurisdiction over cases tmder the Bankruptcy Code, i.e.

the United States Bankruptcy COUli for the Southern District ofNew York.

S. Upon sufficient information, including infOlmation supplied by the Commission,

SIPC has determined that the Defendant has failed or is danger offailing to meet its obligations

to its customers within the meaning of SIPA §78eee(a)(3)(A), and that there exists one or more

of the conditions specified in SIPA §78eee(b)(I). Specifically, the Defendant is unable to meet

its obligations as they mature.

6. Because of the above, the customers of the Defendant are in need of the

protection provided by SIPA, and this Comi should issue a protective decree pursuant to SIPA

§78eee(b)(I).

7. SIPA §78eee(b)(3) provides that upon issuance of a protective decree, the court

shall forthwith appoint as trustee for the liquidation of the business of the debtor and as counsel

for the trustee, such persons as SIPC, in its sole discretion, designates. Pursuant to this authority,

SIPe hereby designates James W. Giddens as Trustee, and Hughes Hubbard & Reed LLP as

counsel for the Trustee, and requests that the Court make appointments to these positions in

accordance with these designations.

8. The filing of this Complaint and Application operates, pursuant to 11 U.S.C.

("Bankruptcy Code") §362(a), as an automatic stay with respect to actions enumerated in that

section. Notice of the applicability ofthe automatic stay should be pmi ofthe Order for relief.

9. SIPA §78eee(b)(2)(B)(i) provides that the Court "shall stay any pending

bankruptcy, mortgage foreclosure, equity receivership, or other proceeding to reorganize,

-2-
Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 3 of 11

conserve, or liquidate the debtor or its property and any other suit against any receIver,

conservator, or trustee of the debtor or its propelty. " Such actions are also stayed by

operation of Bankruptcy Code §362(a).

10. Pursuant to SIPA §78eee(b)(2)(B)(ii), the Court is empowered to stay "any

proceeding to enforce a lien against propelty of the debtor or any other suit against the debtor."

SIPA §78eee(b)(2)(B)(iii) provides that the Comt may stay "enforcement of ... but shall not

abrogate any right ofsetoff, except to the extent such right may be affected under section 553 of

title 11, and shall not abrogate the right to enforce a valid, nonpreferential lien or pledge against

the propelty of the debtor." SIPA §78eee(b)(2)(C)(ii) provides that notwithstanding section

78eee(b)(2)(C)(i), the application by SIPC or any order or decree thereon "may operate as a stay

ofthe foreclosure on, or disposition of, securities collateral pledged by the debtor, whether or not

with respect to one or more ofsuch contracts or agreements, securities sold by the debtor under a

repurchase agreement, or securities lent under a securities lending agreement."

11. The relief requested should be granted in order to safeguard and protect any

property ofthe Defendant for the benefit of its customers and other creditors, and in the interest

of an orderly liquidation of the Defendant's business.

12. Pursuant to SIPA §78eee(b)(4), upon issuance of a protective decree, the Court

shall order the removal of the entire liquidation proceeding to the court of the United States in

this judicial district having jurisdiction over cases under the Bankruptcy Code, i.e., the United

States Bankrnptcy Court for the Southern District ofNew York.

13. SIPC has made no previous application to any Court for the reliefrequested.

-3-
Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 4 of 11

WHEREFORE. SIPC respectfully requests entry of an order substantially in the form of

Exhibit A attached hereto.

DATED: October 31, 2011 Respectfully submitted,

SECURITIES INVESTOR PROTECTION

CORPORATION

805 Fifteenth Street, N.W., Suite 800

Washington, DC 20005

Telephone: (202) 371-8300

Facsimile: (202) 371-6728

KENNET .C UT

Senior Associate General Counsel

E-mail: kcaputo@sipc.org

-4-
Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 5 of 11

EXHIBIT A
Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 6 of 11

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

v.

Defendant.

MF GLOBAL INC.,

Plaintiff-Applicant,

Civil Action No.

SECURITIES INVESTOR PROTECTION

CORPORATION,

)

)

)

)

)

)

)

)

)

)

)

--------------)

ORDER

On the Complaint and Application of the Securities Investor Protection Corporation

("SIPC"), it is hereby:

I. ORDERED, ADmDGED and DECREED that the customers of the Defendant,

MF Global Inc., are in need ofthe protection afforded by the Securities Investor Protection Act

of 1970, as amended ("SIPA," 15 U.S.C. §78aaa et seq.).

II. ORDERED that pursuant to 15 U.S.c. §78eee(b)(3), James W. Giddens is

appointed trustee for the liquidation of the business of the Defendant with all the duties and

powers of a trustee as prescribed in SIPA, and the law firm of Hughes Hubbard and Reed is

appointed counsel for the trustee. The trustee shall file a fidelity bond satisfactory to the Court in

the amount of $ _

III. ORDERED that all persons and entities are notified that, subject to the other

provisions of 11 U.S.C. §362, the automatic stay provisions of 11 U.S.C. §362(a) operate as a

stay of:
Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 7 of 11

A. the commencement or continuation, including the issuance or employment of

process, of a judicial, administrative or other proceeding against the Defendant

that was or could have been commenced before the commencement of this

proceeding, or to recover a claim against the Defendant that arose before the

commencement ofthis proceeding;

B. the enforcement against the Defendant or against property of the estate of a

judgment obtained before the commencement ofthis proceeding;

C. any act to obtain possession ofproperty ofthe estate or property from the estate;

D. any act to create, perfect or enforce any lien against property ofthe estate;

E. any act to create, perfect or enforce against property of the Defendant any lien to

the extent that such lien secures a claim that arose before the commencement of

this proceeding;

F. any act to collect, assess or recover a claim against the Defendant that arose

before the commencement ofthis proceeding;

G. the setoff of any debt owing to the Defendant that arose before the

commencement ofthis proceeding against any claim against the Defendant; and

H. the commencement or continuation of a proceeding before the United States Tax

Court concerning the Defendant's tax liability for a taxable period the Bankruptcy

Court may determine.

IV. ORDERED that all persons and entities are stayed, enjoined and restrained fi-om

directly or indirectly removing, transferring, setting off, receiving, retaining, changing, selling,

pledging, assigning or otherwise disposing of, withdrawing or interfering with any assets or

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Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 8 of 11

property owned, controlled or in the possession ofthe Defendant, including but not limited to the

books and records ofthe Defendant, and customers' securities and credit balances, except for the

purpose of effecting possession and control ofsaid property by the trustee.

V. ORDERED that pursuant to 15 U.S.C. §78eee(b)(2)(B)(i), any pending

bankruptcy, mortgage foreclosure, equity receivership or other proceeding to reorganize,

conserve or liquidate the Defendant or its property and any other suit against any receiver,

conservator or trustee ofthe Defendant or its property, is stayed.

VI. ORDERED that pursuant to 15 U.S.C. §§78eee(b)(2)(B)(ii) and (iii), and

notwithstanding the provisions of 11 U.S.C. §§362(b) and 553, except as otherwise provided in

this Order, all persons and entities are stayed, enjoined and restrained for a period oftwenty-one

(21) days, or such other time as may subsequently be ordered by this Court or any other court

having competent jurisdiction of this proceeding, from enforcing liens or pledges against the

property of the Defendant and from exercising any right of setoff, without first receiving the

written consent of SIPC, as trustee and in its corporate capacity.

VII. ORDERED that, pursuant to 15 U.S.C. §78eee(b)(2)(C)(ii), and notwithstanding

15 U.S.C. §78eee(b)(2)(C)(i), all persons and entities are stayed for a period of twenty-one (21)

days, or such other time as may subsequently be ordered by this Court or any other court having

competent jurisdiction of this proceeding, from foreclosing on, or disposing of, securities

collateral pledged by the Defendant, whether or not with respect to one or more ofsuch contracts

or agreements, securities sold by the Defendant under a repurchase agreement, or securities lent

under a securities lending agreement, without first receiving the written consent of SIPC, as

trustee and in its corporate capacity.

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Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 9 of 11

VIII. ORDERED that the stays set forth above shall not apply to:

A .any suit, action or proceeding brought or to be brought by the United States

Securities and Exchange Coruruission ("Commission") or any self-regulatory organization of

which the Defendant is now a member or was a member within the past six months; or

B. the exercise of a contractual right of a creditor to liquidate, terminate, or

accelerate a securities contract, commodity contract, forward contract, repurchase agreement,

swap agreement, or master netting agreement, as those terms are defined in 11 U.S.c. §§IOI,

741, and 761, to offset or net termination values, payment amounts, or other transfer obligations

arising under or in connection with one or more ofsuch contracts or agreements, or to foreclose

on any cash collateral pledged by the Defendant, whether or not with respect to one or more of

such contracts or agreements; or

C. the exercise of a contractual right of any securities clearing agency to cause the

liquidation ofa securities contract as defined in 11 U.S.C. §741(7); or

D. the exercise of a contractual right of any stockbroker or financial institution, as

defined in 11 U.S.C. §IOI, to use cash or letters of credit held by it as collateral, to cause the

liquidation of its contract for the loan of a security to the Defendant or for the pre-release of

American Depository Receipts or the securities underlying such receipts; or

E. the exercise of a contractual right of any "repo" participant, as defined in 11

U.S.C. §lOl, to use cash to cause the liquidation of a repurchase agreement, pursuant to which

the Defendant is a purchaser of securities, whether or not such repurchase agreement meets the

definition set forth in 11 U.S.C. §101(47); or

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Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 10 of 11

F. any setoff or liquidating transaction undertaken pursuant to the rules or bylaws of

any securities clearing agency registered under section 17A(b) ofthe Securities Exchange Act of

1934, 15 U.S.C.§78q-1(b), or by any person acting under instructions from and on behalf ofsuch

a securities clearing agency; or

G. any settlement transaction undertaken by such securities clearing agency using

securities either (i) in its custody or control, or (ii) in the custody or control of another securities

agency with which it has a Commission approved interface procedure for securities transactions

settlements, provided that the entire proceeds thereof, without benefit of any offset, are promptly

turned over to the uustee; or

H. any u'ansfer or delivery to a securities clearing agency by a bank or other

depository, pursuant to instructions given by such clearing agency, of cash, securities, or other

propeliy of the Defendant held by such bank or depository subject to the instructions of such

clearing agency and constituting a margin payment as defined in 11 U.S.C. §741(5); or

I. the exercise of a contractual right, as such term is used in 11 U.S.C. § 555, in

respect of (i) any extension of credit for the clearance or settlement of securities transactions or

(ii) any margin loan, as such telID is used in 11 U.S.C. § 741(7), by a securities clearing bank.

As used herein, "securities clearing bank" refers to any financial participant, as defined in 11

U.S.C. § 101(22A), that extends credit for the clearance or settlement ofsecurities transactions to

one or more Primary Government Securities Dealers designated as such by the Federal Reserve

Banlc ofNew York £i'om time to time.

IX. ORDERED that pursuant to 15 U.S.C. §78eee(b)(4), this liquidation proceeding is

removed to the United States Bankruptcy Court for the Southern DistTict ofNew YOTk.

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Case 1:11-cv-07750-PAE Document 1 Filed 10/31/11 Page 11 of 11

X. ORDERED that pursuant to 11 U.S.C. §721, the SIPA Tmstee, as appointed

herein, is authorized to operate the business of MF Global Inc. to: (a) conduct business in the

ordinary course until 6:00 p.m. on November 3, 2011, including without limitation, the purchase

and sale of securities, commodities futures and option transactions, and obtaining credit and

incurring debt in relation thereto; (b) complete settlements of pending transactions, and to take

other necessary and appropriate actions to implement the foregoing, in such accounts until 6:00

p.m. on November 7, 2011; and (c) take other action as necessary and appropriate for the orderly

transfer of customer accounts and related property.

SO ORDERED in New Yark, New York this __day of .

2011.

UNITED STATES DISTRICT JUDGE

-6-
UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

-v-

 Case No.

Rule 7.1 Statement

Pursuant to Federal Rule of Civil Procedure 7.1 [formerly Local

General Rule 1.9] and to enable District Judges and Magistrate Judges of the Court

to evaluate possible disqualification or recusal, the undersigned counsel for

(a private non-governmental party)

Date:

Signature of Attorney

Attorney Bar Code:

Form Rule7_1.pdf

certifies that the following are corporate parents, affiliates and/or subsidiaries of

said party, which are publicly held.

SDNY Web 10/2007

Defendant.

Plaintiff,

Securities Investor Protection Corporation

M F Global, Inc.

11-cv-7750

Securities Investor Protection Corporation

October 31, 2011

None.

Case 1:11-cv-07750-PAE Document 2 Filed 10/31/11 Page 1 of 1