A new development, the assets that the US trustee is trying to recover, are held by LCH & ICE as collateral against the past margin calls.  The court case next year to resolve this is now much more complicated, as there is no reason why LCH or ICE would not clear the trades of MFG UK in good faith and likewise take their assets as collateral. I wonder if the bonds were delivered as a pledge, but more likely title transfer. Any lawyers want to comment?

LCH, ICE Join MF Global Suit Over $600 Million Collateral – Bloomberg.