MF Global down 60% right now

gwb-trading · Mar 17, 2008

MF Global Plunges Amid Liquidity Rumors
http://biz.yahoo.com/ap/080317/mf_global_mover.html?.v=1

Gyrene Dertra · Mar 17, 2008

What happened to the customer segregated funds rule and the fact that no FCM is supposed to be allowed to touch an account with customer segregated funds? It sounds as though some are suggesting that this is in fact a farce and not true at all.

mokwit · Mar 17, 2008

It seems cleverly constructed so that it appears there is protection when if fact in extreme circumstances there is not.

petrotrader · Mar 17, 2008

Quote from Landis82:

Let's be CLEAR about this, Mann is a COMMODITY BROKERAGE!

They are #1 in clearing for the CBOT and CME, and #2 on the NYMEX.

They also trade in OTC markets as principal which is a key variable that most here are missing...

mokwit · Mar 17, 2008

Good point.

Trader50 · Mar 17, 2008

well said

Landis82 · Mar 17, 2008

Quote from petrotrader:

They also trade in OTC markets as principal which is a key variable that most here are missing...

Excellent point.
Kudos!

gnome · Mar 17, 2008

Quote from Landis82:

Excellent point.
Kudos!

What's the significance to this to the potential risk of segregated accounts?

ang_99 · Mar 17, 2008

I was also under the impression that the whole point of segregated funds is protection for the client.

Buddha_E · Mar 17, 2008

Segregated funds are meant for the futures accounts, while the Forex account are not cover for this protection. Look at Refco and it is a very good case study. My advise, take your money and get out. MF global is not the only brokering firm on wall street. I rather be safe then sorry. If the situation settle down, I can always open an account with them again.