The trustee of MF Global's defunct brokerage has received approval from a bankruptcy judge for a plan that will repay its former commodity trader customers in full.
The move, approved by Judge Martin Glenn at a hearing Tuesday in U.S. Bankruptcy Court in Manhattan, will repay customers by reallocating to them some funds initially earmarked for non-customer unsecured creditors, according to the trustee's spokesman, Kent Jarrell.
The ruling comes just after the two-year anniversary of the $40 billion collapse of MF's parent company, which was run by former New Jersey Governor and ex-Goldman Sachs chairman Jon Corzine. It was the eighth-largest Chapter 11 bankruptcy.
(Read more: Big banks are looking to dump commodities units)