Search results

http://financialservices.house.gov/UploadedFiles/CME_Group_Response.pdf Looks like MF broke the rules transferring customer funds to meet margin calls.

So true, as CEO of what was primarily a retail firm his first obligation should have been to customers not about building a mini Goldman. If there were flaws in the revenue structure, fix them the right way, through proper accounting. These kind of horse shit stories create sympathy where there...

Sorry about the slow reply. Paragraph 3 is actually a footnote within the brief filed. It quotes from CFR' on CEA brokerage bankruptcy. As far as I can tell the point of this brief is to establish / reference support for the idea that a shortfall in customer funds would give customers first...

For sanity's sake, it's worth reading a portion of CME's arguments in favor of the motion that resulted in this "true up" distribution of ~ 2.1 Billion. See document #670 from the trustee's docket found at the following link: http://dm.epiq11.com/MFG/docket/Default.aspx?rc=1 It seems also...

Dangerkitty, Thanks for posting this

Looks like the malfeasance was deeper and of longer duration than most of the press reported earlier. http://www.firstpost.com/business/mf-global-mixed-funds-transferred-abroad-report-147291.html Obvesiously the Trustee knew things were really bad quite a while ago. So much for transparent...

+1 Looks like Canadian Accounts are getting placed with RBC http://business.financialpost.com/2011/11/13/court-expected-to-approve-mf-global-canada-account-transfer-to-rbc/ Some of the missing funds may be in the UK...

I was told my account went to RJO some time ago. The RJO site had some generic text about account numbers, but I could never set anything up against it because there was no funds in place. I got a "Welcome to RJO" e-mail at ~ 9:20 PM 11/25 and an account equity run statement at 11:40 PM. Funding...

I don't know how MF customers are fairing but 60% of my flat (cash) acct landed at RJO on Thanksgiving Day. I wonder how long before the balance (88 to 100) shows up? I hope others here have good new to report.

It reflects a sequence of events driven by greed - order matching computers work cheaper than people. I suppose this reflects progress and the globalization of trading. But in direct sequence we now have HFT and flash crashes. These serve no public good.

Bankster greed killed liquidity by obsoleting the 'floor'. Now screen traders have to consider both the markets and the condition of their brokers for a full picture of risk. It's a direct attack on the clearing house model. Regulated futures might as well become OTC instruments. If this short...

Looks like the POS trustee has begun to cave under the wave of complaints and lawyering rolling in. Reading the full motion through, this is contingent on CME's $250 million guarantee against over payment. The motion indicates more anticipated distributions to all. Of course there is no good...

The only challenge I have to what you've written is using JP Morgan and the word decent in the same sentence. These folks play dirty pool (I guess there's no other kind really) http://www.marketwatch.com/story/jp-morgan-hsbc-sued-for-silver-manipulation-2010-10-27 If JP Morgan can...

I believe his mandate is to address the interests of all customers. Given that MF Global was a 'broker dealer' in treasuries this probably complicates the issues. The latest info on the trustee website breaks out three groups of customers. Problem is it does appear that some groups are being...

The original statement filed by the trustee implied that this entire action was primarily to protect the interests of customers of the brokerage. Why does it seem that customers with the least disputable claims [customers with accounts having no market exposure due to open positions] are having...

Sent one a long time ago - They don't seem to respond to anything. The trustee's reference to accounts in limbo as 'unsecured creditors' remains unnerving. Anyone who thinks the legal system isn't up for sale based on who can afford to hire who is living in a dream world.

Nice. I'll bet there's a silent run on many FCM's. The clearing members, FCM's, and the exchanges help shape CFTC's regulatory mess. The real surprise is that hasn't happened sooner. All most account holders can do is vote with their feet / funds.

The longer the trustee drags out this liquidation the more scrutiny the entire industry will come under from client funds security perspective. This is logical and no doubt good, but if the exchanges don't apply a bit more pressure they will see their customer bases shrink now that 'default...

The central issue with MF Global is how customer segregated funds were handled and what they were invested in. A focus on who jumped ship in the end days looks like a make work project for lawyers. Customers have a right to transfer business. As much as it's nice to think that claw backs could...

With more read through it seams likely that MF Global's holding company influenced the brokerage arm to shift customer segregated funds into foreign sovereign debt in that closing week. Funds may have been used for margin payments per the Forbes article. There are requirements to maintain...