If you are a former MF Global account and you have your account transferred over to RJ O'Brien, or many others, you will have no choice but to fork out a bunch of cash to keep positions on, according to a statement awaiting all such accounts on the RJO website, or else be next in line for broad liquidations. To wit: "Former MF Global customers transferred to R.J. O’Brien were delivered with approximately 75% of the maintenance margin requirement related to their accounts. As a result, every former MF Global account faces a margin call. No excess equity was transferred." Naturally the next question is "Why are we not getting 100% of our MMR (Maintenance Margin) from the exchange?" And the answer: "This is an agreement between the trustee and CME Group. Please visit www.mfglobaltrustee.com for further information or questions." So, in addition to lowering initial margin for everyone, not just MF Global clients, did the CME iron out preferential terms over other exchanges and get larger equity of the account transfer than most? Because somehow we doubt that RJ O'Brien is the only exchange that is greeting their clients with this particular notice.
R.J. O’Brien Margin Policy Update for Former MF Global Customers
Former MF Global customers transferred to R.J. O’Brien were delivered with approximately 75% of the maintenance margin requirement related to their accounts. As a result, every former MF Global account faces a margin call. No excess equity was transferred.
All former MF Global customers must wire R.J. O’Brien additional monies to bring their account above its initial margin requirement or liquidate their current trading positions.
If the account did not contain a trading position, former MF Global customers must wire or mail R.J. O’Brien funds to initiate trading as no excess equity was transferred.
All Margin Calls Must Be Met By Wire
Former MF Global customers will need to begin initiating payment to meet margin calls immediately. Customers will need to wire monies to the following account:
Harris Bank, Chicago IL
If funds are not received by the close of business (4:00 PM CST) Monday, November 7, 2011, your account will be subject to liquidation.
After your account has been properly margined, the regular R.J. O’Brien margin policy will be in effect.
Who is now clearing my account?
When will I be able to trade my account?
How do I log in? Will I see my positions?
What if there are discrepancies with my account balance or transferred positions?
Has my account number changed?
What numbers do I call or night or day order entry?
What exactly moved over from my position at MF Global?
Will positions on international exchanges move to RJO?
What If I did not have positions on, only cash?
Can I trade open outcry markets?
Where do I get my quotes and charts?
Who should I contact about receiving the cash in my account that did not transfer?
If I go on margin call because my entire account balance did not transfer, what do I do?
Why are we not getting 100% of our MMR (Maintenance Margin) from the exchange?
What happens if I had an account at R.J. O’Brien and MF Global?
Will my commission structure change?
How do I access my statement?
I want to close my account and/or transfer to another broker.
I have a broker-assisted account. Can I still trade with my current market strategist?
What if I have a deliverable position?
How long do I have to meet my margin requirement?
How do I send money to my RJO account?
RJO Treasury Department
222 South Riverside Plaza
Chicago, IL, 60606
United States Dollar-Customer Segregated, Fed wire instructions:
Harris Bank, Chicago IL
R.J. O’Brien Cust Seg Funds
FFC: Customer Account Name
FFC: Customer Account Number
What are the wire cut-off times?
Can you accept checks made out to MF Global?
Do you accept ACH deposits from clients?
I’m a Schwab at MF Global client. Can I still do an internal transfer between my futures and equity Schwab account?
Who do I contact with questions about my Schwab at MF Global account?