FSCS commences MF Global payments

It has paid out £130,000 to customers of MF Global UK Limited and will continue to reimburse claimants as it receives applications forms and assess their claims. The FSCS had to step in after the US brokerage filed for bankruptcy protection in New York last October, following a disastrous $6.3bn bet on European government debt. In its recent £60m interim levy for the investment intermediation sub-class, the FSCS allocated £27m for compensation related to MF Global. Approximately $700m of customer momey was held in MF Global's UK arm.