Just 300 of the 725 staff employed at the UK division of MF Global will remain to reconcile client monies with 150 to depart at the end of January 2012.
Today’s news comes as administrators Richard Heis, Richard Fleming and Mike Pink strive to return client monies under the targeted Special Administration Regime (SAR) rules.
In a public statement, Heis confirmed all segregated client monies will now be pooled together and distributed to clients in accordance with the Financial Services Authority’s Client Money Distribution Rules (CASS 7A).
He said: "Final distributions to clients will not be made until all client risk positions have been liquidated or transferred and all claims against have been validated.
"However, we are likely to make interim distributions along the way. The ultimate return of client money will be dependent on the special administrators establishing the quantum of the claims against funds held in designated client money accounts and the non-segregated monies."
Segregated client money accounts will now need to be identified as distinguished from other MFG UK monies.
The return of client assets will not be finalised until the associated client risk positions have been liquidated or transferred and claims have been validated.
Client assets are not subject to the same pooling arrangements which apply to client money.
By Joe McGrath