[ by Melanie Gretchen ] The MF Global trustee James Giddens issued a statement estimating that segregated funds of former MF Global brokerage customers totaled $5.9 billion - including $4.1 billion that's being paid out to customers, and $1 billion that the trustee has under his control. As of last week, Gidden had returned $1.7 billion of the $2.1 billion contained in the third tranche of funds, toward the current total payout of $4.1 billion.  Up to $1.2 billion of segregated funds are still estimated to be missing, which could include money located overseas. Earlier this month, during testimony before the U.S. House Agricultural Committee, the lead attorney for Giddens' legal team estimated that total customer accounts ranged "between $5.5 billion and $6 billion" - up from the CME Group's original estimate of $5.45 billion. On a separate matter, Giddens last Friday issued a notice disputing the position taken by the MF Global U.K. administrator, who's holding onto $600-$700 million that belongs to U.S. customers who had been trading foreign futures.  Those amounts are separate from the $5.9 billion in U.S. customer segregated funds and from the estimated $1.2 billion shortfall. Here's a breakdown of the funds: Total segregated account requirement: $5.9 billion. The total estimated amount of funds in U.S. customer segregated accounts, per the bankruptcy trustee's computations, that includes money under his control but not yet dispersed to customers. Total funds under trustee control: $5.1 billion. This represents all segregated customer funds that the trustee has secured and has under his control - all of which came from U.S. depositories.   This is cash that has been located and most of which is being returned to customers in tranches. Estimated segregated fund shortfall: $1.2 billion. Giddens continues to maintain that there is an "apparent significant shortfall" in what MF Global management should have segregated.  Some of this money could be sitting in foreign depositories as well as in the U.S.  However, no one really knows, at this point in time. Redistributions. Some $4.1 billion has been or will be returned to customers in 3 payouts or tranches, as follows:

• Funds being used as collateral (1st tranche):  $2.5 billion. Of this sum, 60%, or $1.55 billion, was returned to clients as their accounts were transferred to new brokers - about a week after the bankruptcy.  The transfers were handled in bulk to 10 receiving brokers.  The remaining $950 million has not been released.
• Funds in cash-only accounts (2nd tranche): $869 million. Of this sum, 60%, or about $520 million, has been returned to customers.  The remaining $350 million has not been released.
• Cash Funds in Trading Accounts (3rd tranche): $2.1 billion. Of this sum, $1.7 billion has been returned to customers.  The remaining $400 million is in the process of being returned and the full transfer of funds back to customers will be completed in the next couple of weeks.

For more details, go to [Reuters, 2/6/12].