Rogue trader cost MF Global $142M

1,000's of lots traded in all months in wheat.. trades were on from 3 am to 9:30 am. this broker did not even have any clients!!!
41 minutes into the conference

www.mfglobalinvestorrelations.com


http://www.mfglobalinvestorrelation...iqueId=&mp=irol-calendar&mpdp=EventId~1782558!WebCastId~735478!StreamId~1071036&pp=IROL-EnhancedWebCast&ppdp=EventId~1782558!WebCastId~735478!StreamId~1071036!id~281615&pph=540&ppw=788&rdu=&rdt=&upv=0

or

http://www.mfglobalinvestorrelations.com/phoenix.zhtml?c=194911&p=irol-calendar&EventId=1782558


1,000's of lots traded in all months in wheat.. trades were on from 3 am to 9:30 am
 
I still don't understand what Dooley's relationship to MF Global was and how he had the access he did. An article in the Chicago Sun-Times says he only ever had one customer with MF and hadn't done any business with that one customer in some time. The articles quotes one of Dooley's relatives who says that Dooley was a typical day trader who on a good day made $1000??? Yet, he had access to internal systems that as we know now had no buying limit controls.

My question is what did MF Global get out of this deal besides the $140m loss and a billion+ dollar hit to market cap? I can't imagine that Dooley was giving them very much in commissions on his own account to make it worthwhile. Essentially, Dooley was nothing more than a retail trader working as a shadow prop trader by using MF's internal systems enjoying all the potential profits and none of the risk...sounds like a dream job to me. This story gets more confusing by the day :confused:.

http://www.suntimes.com/business/820500,CST-FIN-trader01.article
 
All upside potential with no downside losses beyond funds in your account?
This reminds me of Forex, so

Let's hope MF isn't BUCKETING FUTURES.

Most people lose money, even at semi-pro ranks, so they have guaranteed profits in the long run.
 
Quote from crgarcia:

Real pros ALWAYS use limit orders.

Financial institutions will immediately fire traders who use market orders (at least some funds I personally know).

If he was trading after-hours, it's incredible he didn't used limit orders.
More...


Mate what piss poor funds to you know? I have done loads of business for a lot of the BIG funds and they rarely have an exact level as the size they are trading means you need to work orders for one and also the market often dictates what type of order to use in a fast moving market you have to go to where the size is.

I agree with the after hours limit comment though.
 
I saw it in real time last week when he shorted in the overnight session. He was using limit orders, but in a real weird way...

I thought it was some panic selling as he was showing huge size and taking every little bid around without waiting for a bigger counterpart. Placing on a 5 lot with 250 lots, then placing on a 2 lots 25 ticks under...

It was him alone that led the market to limit down after hours.
 
update on Mr. Gamblore..

March 6 (Bloomberg) -- Evan ``Brent'' Dooley, the 40-year- old wheat trader whose wrong-way bet cost MF Global Ltd. $141.5 million, lost his house and car in a 2002 bankruptcy and borrowed from family and friends after earlier reversals.

Public records and interviews paint a picture of a man who repeatedly ran into financial scrapes, then tried to work his way out of trouble. Sometimes he gambled all night at casinos in Tunica, Mississippi, according to divorce-court filings.


http://www.bloomberg.com/apps/news?pid=20601109&sid=axeRxkfcktg4&refer=home
 
Quote from Trader KGB:

update on Mr. Gamblore..

March 6 (Bloomberg) -- Evan ``Brent'' Dooley, the 40-year- old wheat trader whose wrong-way bet cost MF Global Ltd. $141.5 million, lost his house and car in a 2002 bankruptcy and borrowed from family and friends after earlier reversals.

Public records and interviews paint a picture of a man who repeatedly ran into financial scrapes, then tried to work his way out of trouble. Sometimes he gambled all night at casinos in Tunica, Mississippi, according to divorce-court filings.


http://www.bloomberg.com/apps/news?pid=20601109&sid=axeRxkfcktg4&refer=home
More...
Why many daytraders are also gamblers?
 
Quote from crgarcia:

Why many daytraders are also gamblers?
More...
Did you read the article or the excerpt? This guy has lifetime gambling addiction written all over him..
 
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