Item 1.01 Entry into a Material Definitive Agreement

On October 23, 2008, MF Global Inc., a subsidiary of MF Global Ltd. (the "Company"), and Man Group plc (acting through agents) entered into a settlement agreement (the "Settlement Agreement") with certain insurance companies in connection with the recovery of $75 million in settlement and litigation costs paid by the Company to the Receiver ad litem for the Philadelphia Alternative Asset Fund Ltd. in connection with a related legal proceeding. The Company previously recorded an expense of $76.8 million in the year ended March 31, 2008. Excluding previously recorded legal fees, the Company expects to recognize $62 million in insurance proceeds which will be presented in net revenues in the financial statements for the quarter ending December 31, 2008.

A copy of the Settlement Agreement is attached as Exhibit 10.1 and is incorporated into this Item 1.01 by reference. Information regarding the legal proceeding involving the Company and the Receiver ad litem for the Philadelphia Alternative Asset Fund Ltd. can be found in the Company's Form 10-Q filed with the Securities and Exchange Commission on August 13, 2008 and is incorporated into this Item 1.01 by reference.

Item 9.01. Financial Statements and Exhibits

(a) None.

(b) None.

(c) None.

(d)

Exhibit 10.1: Settlement Agreement re in the matter of an arbitration between Man Group plc and various insurers dated October 23, 2008.

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