KPMG told Reuters the formal applications to reclaim monies and assets from MF Global UK had been flowing in this week and by late Friday the number of claims from clients and creditors was about 4,500.

The administrator to the British arm of the futures broker since its collapse on October 31 will meet MF Global clients in London on Monday, when they will vote on the administrator's strategy and appoint a committee to sign off KPMG's fee.

KPMG told Reuters on Thursday it had recovered the majority of MF Global UK client monies and virtually all of their assets, valued jointly at about $1.2 billion, and hoped to start returning these to owners shortly.

"We hope to commence the return of client assets and an interim distribution of monies as early as this month," Richard Heis, joint special administrator of MF Global UK, said.

The administrator is initially talking with clients over the return of 30 million pounds of assets, in what would be the first major returns to European customers since the U.S. futures broker filed for administration.

MF Global UK clients needed to have filed their claims by close of business today to be eligible to vote on Monday but KPMG said it is open to further claims from clients and creditors.

MF Global had been one of the biggest U.S. futures brokers but the firm, led by former United States Senator Jon Corzine, failed after a bad $6.3 billion bet on European sovereign debt spooked counterparties and investors.

(Editing by Jane Merriman)

By Luke Jeffs