From the Wires
R.J. O'Brien Sends Letter to Judge in MF Global Bankruptcy Case in Support of Customer Advocacy Group Motion to Compel Examination Under Oath of Former Executives
By: PR Newswire
Dec. 18, 2012 01:45 PM
CHICAGO, Dec. 18, 2012 /PRNewswire/ -- R.J. O'Brien & Associates (RJO), the oldest and largest independent futures brokerage and clearing firm in the United States, sent a letter yesterday to the judge presiding in the U.S. bankruptcy case of MF Global, Inc., declaring the firm's support of a recent motion filed by a customer advocacy group. The Commodity Customer Coalition (CCC) filed a motion in late November calling for a federal Bankruptcy Rule 2004 examination, which would compel an examination under oath of certain former executives of the firm.
RJO Chairman and CEO Gerald Corcoran said: "On behalf of our customers, we believe wholeheartedly that in the matter of MF Global, we must ensure that no stone is left unturned in the ongoing investigation of how customer funds went missing, and that individuals who bear responsibility are held accountable. Those officials of the firm with knowledge of the last days and weeks should be questioned by attorneys representing the customers whose funds disappeared to understand what happened, how it happened and what will prevent this from happening again."
RJO has a client base that includes many farmers and other agricultural entities which hedge their risk in the futures markets, and a number of these clients were affected by the MF Global bankruptcy.
Corcoran has been a strong proponent of changes to the industry's customer protection regime in the wake of the bankruptcy filing in October 2011.
He said: "While we have come together as an industry in an unprecedented fashion to make tangible improvements to the system that protects customers, we are missing a critical piece of the puzzle. Without examination and cross-examination by attorneys of those in charge, we may never truly know exactly what transpired in the final days and weeks, whether any individuals bear criminal or civil responsibility for these actions, and the extent to which the industry or its regulators could have prevented this travesty. We believe this action to compel testimony is in the best interest of our clients and others who suffered as a result of the firm's demise."
The letter to Judge Martin Glenn stated: "RJO supports transparency in the futures industry and in particular, how transparency will aid our customers in regaining confidence by understanding what led to the collapse of MF Global, Inc."
About R.J. O'Brien
Founded in 1914, RJO is the largest independent futures brokerage firm in the United States. The firm offers state-of-the-art electronic trading technology and 24-hour trade execution on every futures exchange worldwide. Clearing more than 100,000 client accounts, RJO services a global network of more than 400 introducing brokers and many of the world's largest financial, industrial and agricultural institutions. For more information, please visit www.rjobrien.com.
SOURCE R.J. O'Brien & Associates
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