Madoff Securities International Limited Default
Below you will find some information that can be used by member firms to answer their queries in relation to the default of Madoff Securities International Limited (“Madoff Securities”), which was declared at 16:00 hours on Wednesday 20 May 2009. The Exchange will continue to update this information.
Provisional Liquidator Information
Specified partners within the firm of Grant Thornton UK LLP ("Grant Thornton ") are the Provisional Liquidator for Madoff Securities.
Default Procedures
The operation of the Exchange's default procedures, in accordance with the provisions of the Companies Act 1989, is designed to produce a net sum calculation of the liabilities owed to and by the defaulter acting as principal with respect to each of its counterparties to unsettled non CCP on-Exchange trades. Under the rules of the London Stock Exchange the Exchange will determine the net amount payable between Madoff Securities and each of its counterparties in respect of unsettled on-Exchange trades as at the time of default (16:00 hrs on Wednesday 20 May 2009).
In accordance with Rule D121, this net amount will be certified by the Exchange and may be proved as a debt by the defaulter or counterparty as applicable. Following this certification, it is for the defaulter and its counterparties to organise the associated payments. The Exchange is not authorised to engage in the payment process and its role in the default will cease once it certifies the net amount payable.
Where Madoff Securities was acting in an agency capacity the Exchange will contact the defaulter's customer or counterparty and the non-defaulting member firm and will require them to settle the contract.
Current Status
This page will be updated as the default process develops.
Rules
Download the rules of the London Stock Exchange
Ceasing of Settlement
The Exchange's guidance in relation to settlement.
Member Firms
The Exchange's guidance in relation to member firms.
Non-Members
The Exchange's guidance in relation to non-member firms and their custodians.
Lending Arrangements
The Exchange's guidance in relation to counterparty details.
Hammer Prices
The Exchange's guidance in relation to hammer prices.
Contact details
Default Official - Nick Bayley +44 20 7797 4214 (STX 34214) defaultofficial@londonstockexchange.com
Deputy Default Official - Tim Rowe + 44 20 7797 3468 (STX 33468) trowe@londonstockexchange.com
Downloads
N35/09 - Madoff Securities International Limited – In Default – Hammer prices updated – Version 2 dated 3 August 2009
N34/09 - Madoff Securities International Limited – In Default –Termination of membership
N32/09 - Madoff Securities International Limited – In Default – Data reconciliation and net amount certificate process - Next steps
Attachment 1 N32/09
N28/09 - Madoff Securities International Limited – In Default – Fixing of Hammer Prices
N27/09 - Madoff Securities International Limited - In Default - Application of default rules and submission of unsettled trade and loan details by counterparties
N25/09 - Declaration of Default - Madoff Securities International Limited