History

MF Global traces its roots to the amoroso trading business started by James Man in England in 1783, which acquired into broader bolt trading afore its afterwards transformation into a banking casework business during the 1980s.17 Its above parent, again accepted as ED&F Man, adapted from authentic banknote bolt into article futures in the backward 1970s, and accustomed the Anderson Man futures allowance in 1981. It afterwards afflicted its name to ED&F Man All-embracing and again Man Financial, afore adopting the accepted cast afterward the antecedent accessible alms (IPO) and break of the allowance from the asset administration operation. ED&F Man operated as a affiliation through to the 1970s, if it started an all-embracing amplification which, by 1983, added its agents 650 employees. ED&F Man listed on the London Banal Exchange in 1994, alteration its name to Man Accumulation in 2000. Its agronomical business, which retained the ED&F Man name, was awash to administration the aforementioned year.

The accelerated amplification of the Man Investments assemblage in the arising barrier armamentarium administration business buried abounding investors from the development of its allowance unit.Man Banking boarded on a alternation of acquisitions, which broadcast its artefact adequacy and geographic reach, starting in 1989 with the acquirement of the Chicago-based GNP Commodities, and including acclaimed industry names such as Geldermann, Tullett & Tokyo Futures, First American Discount Corp., Australia's Ord Minnett and GNI. The 2002 acquirement of GNI was the better of these and gave Man Banking admission to the again growing Contract for aberration bazaar and GNI's trading belvedere GNI touch.

However, in 2005 Man Banking fabricated its better accord with the transformative $323 actor accretion of applicant assets and accounts from entities of Refco, afterward the U.S. financial-services group's collapse in backward 2005. The Refco accord followed a hotly contested bargain with Cerberus Capital, the clandestine disinterestedness group, and additional Man Financial's calibration in retail and institutional business.18 In June 2007, Man Banking was spun off from Man Accumulation as a separate, accessible entity, via an IPO, and renamed MF Global.19

On February 28, 2008, MF Global appear a bad debt provision20 in the bulk of $141.5 million. The accouterment was the aftereffect of unauthorised trading by a adumbrative in a MF Global annex office, who on February 27, 2008, while trading in the aureate futures bazaar in his claimed account, essentially exceeded his accustomed trading limit. MF Global captivated a appointment call21 at 11 a.m. EST on February 28 to altercate the matter. MF Global was fined $10,000,000 by the CFTC over the adventure and an different Natural gas adventure from 2003.2223 The CME Accumulation aswell fined MF Global $495,000 over the aureate incident.24

On March 17, 2008, shares of MF Global plummeted on clamminess fears.25 The CME,26 ICE,27 Nymex28 and CFTC29 issued statements acknowledging MF Global was in acquiescence with authoritative and banking requirements.

In October 2008, above Chicago Lath of Trade CEO Bernard W. Dan30 became the CEO of MF Global, advertence that he would advance MF Global's accident management.19 In November 2009, MF Global confused its accumulated address from Bermuda to the United States.19 In March 2010, Jon Corzine, who had concluded his appellation as governor of New Jersey in January 2010 afterwards getting defeated by Republican amateur Chris Christie, became the CEO, replacing Dan.19

editBankruptcy protection

On October 25, 2011 MF Global appear a $191.6 actor annual accident as a aftereffect of trading on European government bonds. In acknowledgment Moody's and Fitch cut the company's acclaim rankings to junk. Corzine was alive to acquisition a buyer, according to several reports.31

The firm's lath met through the weekend of October 29/30 in New York to accede options including a auction to avoid failure, according to a getting with absolute ability of the situationcitation needed. It was chock-full from accomplishing new business with the New York Fed until it showed it was able to accomplish its responsibilities as a primary dealer, according to a account on the regulator's website. Trading in MF Global's banal was halted.

On Monday October 31, 2011, MF Global filed for Chapter 11 bankruptcy. KPMG is now administering the "Special Administration" for MF Global UK. The Wall Street Journal appear that MF Global would seek Chapter 11 defalcation aegis afterwards advance $6 billion in absolute bonds issued by European countries.3233 According to the CME Accumulation Inc., MF Global bankrupt rules on befitting chump money abstracted from its own trading accounts. On August 31, 2011 MF Global had $7.3 billion in chump assets, according to Article Futures Trading Commission data.3435 The MF Global defalcation was the better Wall Street close to collapse back the Lehman Brothers adventure in September 2008.36

In affidavit filed in U.S. Defalcation Court in Manhattan, MF Global listed debt of $39.7 billion and assets of $41 billion.

The U.S. Securities and Exchange Commission is aswell reviewing trades in MF Global Holdings Ltd. (MF) convertible bonds to actuate whether some investors awash the debt based on arcane advice afore the firm’s demise,.37

Days afterwards getting called to arch the analysis for Penn State advisers of the Penn State sex corruption scandal, above Federal Bureau of Analysis administrator Louis J. Freeh was called trustee for the MF defalcation case. He was appointed by U.S. Trustee Tracy Hope Davis alive beneath the ascendancy of U.S. Defalcation Court Judge Martin Glenn.38