Rogue trader cost MF Global $142M

Quote from crgarcia:

Laws are laws. If the CME doesn't act then they would be covering a violation, another crime.

What is most possible is that the CME gives them a fine, as small as legally possible, and out of the limelight.
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That's my take as well.
Just a little slap on the wrist, and off they go. Business as usual. Laws are laws and they are bent everyday, especially by the ppl in charge.
 
Quote from nolajy:

rumor is he meant to put a 5000 lot sell limit order and pushed the mkt button.. the computer of course did what he said .. and moved the price where it needed to go to fill his order.. might not have been to bad if would hae used a limit. This is what caused the huge rise in wheat in 4 minutes and killed his previous positions and then gave him the worst slippage in history
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That doesn't make sense, if he pressed the market order button short, the market should have tanked as the bulls looked to get better fills as the market dropped, if the market shot up as it filled his orders he would have got more favourable fills as he was shorting from a high prices.
 
correction.. i guess it is that easy to make a mistake..
you are correct.. buy limit is Correct.. most likely covering and didn't want to move market to high while covering.. but market order changed all of that.
 
Quote from brocklanders:

The risk managers at this firm need to be taken out to the woodshed. The guy was trading out of their Memphis, TN office for goodness sake. 14,000 contracts...Red Flag....Hello???
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There is no such thing as "rogue traders... ONLY "rogue managers".
 
Quote from crgarcia:

Laws are laws. If the CME doesn't act then they would be covering a violation, another crime.

What is most possible is that the CME gives them a fine, as small as legally possible, and out of the limelight.
More...

You need to realize just who Mann-Financial is. The fact that the CME made some rather supportive "comments" regarding MF is quite telling.
 
Man didn't violate any laws. Margin is an EOD affair. The trade was closed before CME margins were an issue.

FYI: Dooley's position was short. If you pull up a 5 minute ZW chart with volume you'll see a couple of 3000 contract bars around 5 in the morning. That's Dooley selling. Those big volume, mega rally bars after the RTH open are Man covering.
 
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