MF Global Customer Pain

 The MF Global debacle's been heavily covered elsewhere, however 
Reuters reports tonight;

" Call it the mother of all margin calls: Up to 50,000 former customers of bankrupt broker MF Global must find some $1 billion in additional collateral almost overnight, or be forced out of their trades. Come Friday, with the mass transfer of commodity trading accounts from Jon Corzine's fallen firm to six of its erstwhile rivals, margin clerks will be wrapping up a reckoning of how much additional money is needed to cover millions of positions. Clients who can't quickly meet their margin will have to liquidate, possibly making for a tumultuous day's trade.

Clients of MF Global involved in the mass transfer say they'll need to find around 40 percent of their existing margins from funds that are often still locked up in the bankrupt firm. Some will be able to do it but others -- some holding illiquid contracts far out the curve -- face a forced liquidation."
 Haven't seen this reported elsewhere.


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