The MF Global playbook is playing out step by step:
- JEFFERIES HAS BEGAN AN ORDERLY LIQUIDATION OF PFG’S POSITIONS
- JEFFERIES DOESN'T EXPECT TO INCUR ANY LOSS IN RESPECT OF PFG
- JEFFERIES ALREADY LIQUIDATED SUBSTANTIAL PORTION OF POSITIONS
- JEFFERIES SAYS PFG POSITIONS SECURED BY CASH HELD IN MARGIN ACC
- JEFERIES TO KEEP PFG LIQUIDATION PROCEEDS IN SEGREGATED ACCOUNTS
And the full statement:
In response to inquiries, Jefferies today confirmed that it has a clearing relationship with Peregrine Financial Group ("PFG") with trading positions held on behalf of PFG's clients fully secured by cash held in margin accounts. After PFG was unable to meet a margin call that Jefferies made in response to yesterday's National Future Association's Member Responsibility Action, Jefferies began an orderly liquidation of PFG's positions. Jefferies has already liquidated a substantial portion of those positions and expects to be able to expeditiously liquidate the remainder in a fair and reasonable manner, after which all proceeds of the liquidation will be maintained in segregated accounts. Jefferies does not expect to incur any loss in respect of PFG.