In response to inquiries, Jefferies today confirmed that it has a
clearing relationship with Peregrine Financial Group (“PFG”) with
trading positions held on behalf of PFG’s clients fully secured by cash
held in margin accounts. After PFG was unable to meet a margin call that
Jefferies made in response to yesterday’s National Future Association’s
Member Responsibility Action, Jefferies began an orderly liquidation of
PFG’s positions. Jefferies has already liquidated a substantial portion
of those positions and expects to be able to expeditiously liquidate the
remainder in a fair and reasonable manner, after which all proceeds of
the liquidation will be maintained in segregated accounts. Jefferies
does not expect to incur any loss in respect of PFG.
Jefferies Group, Inc. (NYSE: JEF), the global investment banking firm
focused on serving clients for 50 years, is a leader in providing
insight, expertise and execution to investors, companies and
governments. The firm provides a full range of investment banking,
sales, trading, research and strategy across the spectrum of equities,
fixed income, foreign exchange, futures and commodities, and also select
asset and wealth management strategies, in the Americas, Europe and Asia.
