Castor Pollux will pay USD1,000,000 at closing and up to USD24.5m in deferred compensation through December 2013. Three bidders competed in the auction. One entity that had submitted a bid on 22 April withdrew its bid prior to the auction.

On 27 March 2009, the trustee entered into a definitive agreement with Castor Pollux, subject to higher and better offers, for the sale of the market making business. That bid was for USD500,000 to be paid at closing and payments of up to USD15m based on gross revenues generated and shares traded through 2012.

As a result of the auction, the closing date cash consideration is twice what was initially proposed and the earn-out consideration is also substantially higher than the original bid.

"The auction today yielded a higher and better offer for the market making business. The additional consideration that we will receive as a result of the auction will benefit Madoff's victims. Not only is the initial payment higher than the original bid, the transaction allows Madoff's victims to participate in future earnings of the business in a higher amount than the original bid," says Picard.

Trustee Picard also noted that all of the costs associated with the marketing and sale of the market making assets have been funded by the Securities Investor Protection Corporation.

The Bankruptcy Court will hold a hearing on 30 April 2009 where the trustee will present the winning bid to the Court for approval.