IntercontinentalExchange sought to have bankruptcy court issue a ruling that would "immediately" free up customer cash held on deposit with MF Global.  The ICE action was prompted by the return of some funds to other MF Global clients this week. ICE argued that the process which reunited MFG derivatives-trading clients with their funds, that they then used to back up derivatives bets, unfairly favored some customers over others.  The firm upped the stakes by saying the court's decision on the matter would set a legal precedent. ICE Facilitates Transfers for MFG Customers. ICE joined with other exchanges and clearing facilities last week to arrange a mass exit from MF Global for brokers, hedge funds and individual investors who had trades open at the time the firm fell into bankruptcy. Those clients were placed with a group of healthy clearing firms, and a "hold" on margin posted against trades began to be lifted Wednesday morning. But customers who took trades off the table ahead of the mass transfer or had only cash in their accounts remain separated from their funds. The trustee supervising the company's liquidation is expected to require clients to file claims to retrieve these assets. MFG Customers Hit With Margin Calls. ICE asked Judge Martin Glenn of the U.S. Bankruptcy Court in New York, to permit the release of a "portion" of the cash from MF Global trading accounts.  Clients who had trades on saw the positions moved last week with about 60% of overall margin posted up against the trades. ICE argued that those customers who closed out their trades following MF Global's bankruptcy filing or pre-emptively moved their business to rival firms without the collateral held at MF Global have been disadvantaged by the way the process has played out so far. Should the judge not rectify the issue, ICE warned that the inaction could lay out a legal precedent for future clearing-firm failures and encourage clients to keep their trades on in hopes of getting earlier access to funds—a scenario that would leave clearinghouses and other traders exposed to greater risk.  [WS Journal, 11/10/11]