The Australian arm of collapsed US futures broker MF Global Holdings Ltd has been shut down by the administrator Deloitte after no buyers could be found, the Australian newspaper reported on Saturday Employees were told by the administrator on Friday that the business had been wound up and most had lost their jobs, the newspaper reported.
A Deloitte spokesman told Reuters the general information contained in the newspaper report was correct but declined to comment further. Deloitte was appointed joint administrator of MF Global Australia (MFGA) on November 1, one day after its US parent applied for bankruptcy protection after losing money on misplaced bets on European sovereign debt.
The administrators had hoped the sale of the local business would be completed by the end of this week. In response to the collapse of MF Global, the Australian government on Saturday released a discussion paper in a first step aimed at reforming the regulatory regime and strengthening client protection for over-the-counter (OTC) derivative transactions. "The collapse of MF Global has underscored the need to investigate options for strengthening client money protections for over-the-counter derivative transactions," Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, said.
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