Traders' Roundtable

Has anyone got any sensible comments on MF Global? Just when you thought it was safe to go back into the water....terrifying. I had foolishly missed a T Bill Rollover and had money on deposit with MF Global: I put that right earlier today and apparently get delivery of my T Bills later today. One has to assume that one is safe with money mostly in T Bills or at the futures exchanges and with a segregated account. But………..

ICE, CME etc have made press releases as has MF Global itself.

CME said as follows:
CHICAGO, March 17 /PRNewswire-FirstCall/ -- CME Group confirms that all clearing members, including MF Global and Bear Stearns, remain in good standing and continue to meet all of their obligations to the clearing house.

Here's hoping.

http://finance.google.com/finance?client=ob&q=MF

Just saw this. Good grief. They should have kept the Co private.

IBKR had a ruff day as well. They had a notice on their execution platform that all was well and R E L A X.

World needs a serious chill pill. Its hard to imagine the business world if the feds con game fails.

They should have cloned Greenspan.

MF Global Provides Business Update
Reiterates Strong Quarter-to-Date Performance
NEW YORK NEW YORK--(BUSINESS WIRE)--March 17, 2008--MF Global Ltd., a leading broker of exchange-traded futures and options, issues the following statement in connection with today's market activity:
MF Global understands the significant concerns across the markets. Our clients continue to show strong support, and our counterparty relationships are sound. We are seeing no impact on our repo lines. In addition, MF Global has no exposure to sub-prime mortgage-backed securities that have been the root cause of the current market environment.
While the company uses third party repo lines, we have alternative funding in the event those lines are not available to the company. The company is very well capitalized with $1.4 billion in a committed, undrawn credit facility.
As previously-announced, as of today, volumes and net revenues for the current quarter to date remain at higher levels than in any comparable period during the current fiscal year. In addition, client funds are at a higher level today than on February 27, 2008, or at the end of the third quarter ended December 31, 2007.
Joe Lewis is not a client of MF Global.
The company is providing this information because it plans to meet with investors and analysts over the coming days and weeks. MF Global intends to provide further information about these matters when it announces results for the current fiscal year ending March 31, 2008.

One of my accounts was at Refco; I closed it and six months later, trouble struck. Another of my accounts was at Bear Stearns; I closed that one and eighteen months later, trouble struck. Another is at MF Global right now and worry, if not trouble, has struck here too. Don't follow me around, I seem to be a Typhoid carrier.

Sluggo,
Your evidence suggest it is the large loss of liquidity that happens after you close out your account that seems to be causing the aftermath problem you describe. I have my account at MF Global as well and would appreciate a warning, if you are going to drain your account with them as well.

On my Mfglobal account in london i pay interest on currencies where i am down, but i get nothing on credits.
Is it the same for you?

Thank you

marriot wrote:On my Mfglobal account in london i pay interest on currencies where i am down, but i get nothing on credits.
Is it the same for you?

Thank you

I am in figthing mode, today.
Just find a small error on the statments.
They have charged a roll on KPO at 3.500 usd
per contract.

That has been my experience as well. You need to request that all negative equity balances in foreign currencies where you are not holding positions be converted back to your native currency. You will not receive positive carry, yet you will pay negative.

Also, watch out for new "desk" charges if you execute through a trade desk, either over the phone or through electronic orders that are printed up at the desk for execution. They are making some frustrating new changes on that front as well.