The commodity brokers who receive these transfers are responsible for notifying the customers as to the new commodity broker for these accounts.
KCBT said it will set customer initial to maintenance ratios to 1.00, setting the initial margin upcharge to zero. This will be in effect from Nov. 7 forward until further notice. This change is intended to be temporary.
The intention of this reduction is to decrease the size of any margin calls resulting from the transfer of MF Global customers to new clearing members. The upcharge is normally implemented to customer accounts during a margin call.
The change still allows for appropriate risk management protections for the market.