Australian (ASX) Stock Market Forum

MF Global Australia - What are you doing?

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Re: MF Global Aus - what are you doing?

They've stopped taking orders on Friday.
Will have to see if any asset sales eventuate.

Money with them is safe-ish. Its segregated trust account... or so I believe
 
Re: MF Global Aus - what are you doing?

skyQuake said:
They've stopped taking orders on Friday.
Will have to see if any asset sales eventuate.

Money with them is safe-ish. Its segregated trust account... or so I believe
Click to expand...

Orders for funds fund withdrawals or orders to bull/sell CFDs etc?

I remember when I first looked into them their, structure seemed safe, but if that's the case, it is odd if that they are not letting people withdraw.
 
Re: MF Global Aus - what are you doing?

skyQuake said:
They've stopped taking orders on Friday.
Will have to see if any asset sales eventuate.

Money with them is safe-ish. Its segregated trust account... or so I believe
Click to expand...

Yes, segregated from the firms account but --- possible crunch time

According to disclosures accompanying MF Global’s Australian products, all contract-for-difference client funds are pooled together in one account. This potentially exposes one client to the risk of losses for another clients trade. However client funds are not exposed to the firm’s finances.

Read more: http://www.theage.com.au/business/l...g-mf-global-20111031-1mrog.html#ixzz1cLMRW6Wb
Click to expand...
 
Just received an email from MF advising not to open any new positions. They always appeared to be of good "reputational risk", so this is somewhat stunning.

Let's see what tomorrow brings ...
 
Jon Corzine the US supposed white night ex Goldman has blown it up!
Shares in MF Global rallied when he first joined. They are now down 80% and counting.
 
I am caught up in this. I still have substantial funds in the account even though I have moved ~90% out last week.

It was pure luck that on Tuesday night I saw the MF share price plummet, read through their announcements and decided to reduce my exposure. I moved ~40% of the idle funds out on Wed. At that stage no one was talking bankruptcy so I only did what was precautionary.

By Wednesday night's session the news were getting worse and I got more worried, and decided to close what I can the following day and get out what I can. Luck would have it that ASX had a fcuking glitch that day... so I wasn't able to close everything until late afternoon. I made the withdrawal request and the money didn't arrive in my bank account until late Friday night. It was a nerve wracking wait.

And through shear bad luck I had margin tied up in a large capital raising position that couldn't be closed out and couldn't be withdrawn... I only do this kind of trades once a blue moon and for this to be tied up just in the wrong time :banghead: Now I need to wait for the outcome of the recovery process.

No doubt the mainstream media will have another round of CFD bashing. But this collapse has nothing to do with CFDs. MFG collapsed because of their European debt exposure. And their exposure hasn't even gone bad yet (most debt matures Dec 2012 and is possible that they would get 100c in the dollar thanks to the ESEF) - but with rating downgrade, increasing collateral requirement, lack of trust and everything else, this death spiral played out within a week. And the declining trust from clients means that there were no buyers for even their low risk business units like traditional broking and clearing.

With MFGA CFDs and futures, client moneies are co-mingled in segrgated accounts and there will be deficiencies especially with markets moving today. But I am catiously optimistic that clients should receive the majority of their money back. Both the HKSE and SGX announced yesterday that MFG were still posting up adequate margin for their positions on those exchanges. Given that Comsec, Westpac and ANZ all use MFGA for their CFDs I hope that means the Australian subsidary is also doing the right thing wrt all the monies.

I am a little shaken by this despite getting most of the money out, and it will be a stressful period waiting for a resolution on the monies still in there. I will probably take some time off to rethink my risk management on who I trust my money with. But the decision to use MFG because it is a listed entity saved my bacon this time, and it will be of the highest priority if I was to trade CFDs again.

Good luck to all account holders and also to the people at MFGA. They have given me good service and they are caught up in this through no fault of their own.
 
As SKC mentions, Commsec OTC CFDs uses MF Global as a counterparty. Hence, when I asked if I could transfer funds out of my Commsec OTC CFDs account this morning, I was told that this is not currently possible and would have to wait for further information.

I rang MF Global Australia's number this morning and the phone rang out with no answer.

Anyone else with Commsec OTC CFDs?
 
Just received this email for my withdrawal request:

"Your funds are being handled by the administrators as we have filed for bankruptcy. Funds will be returned to you in due course once the administrators have tallied up the books."

Luckily I only have a small amount in there anyway.
 
Nick29 said:
Just received this email for my withdrawal request:

"Your funds are being handled by the administrators as we have filed for bankruptcy. Funds will be returned to you in due course once the administrators have tallied up the books."

Luckily I only have a small amount in there anyway.
Click to expand...

Son of (&*%(^$*%#*^:mad::mad::mad:

You go away on holiday without internet or phone connection and..........
 
Back in early 2008, MFG (parent co) was rumoured to be insolvent. The recent Euro crisis is the final nail in the coffin.
Its share price has dropped -65% last week and -96% from 2007 high

MFG.PNG
 
I'm trying to close my remaining positions today and am having no luck. Anyone managed to close out positons?
 
Delloite have been appointed administrators and are using Deutche Bank to close out client positions, (And the brokerage has been increased to 25 basis points to do so).

Funds will be sent back to clients at the determination of the administrators.

cheers

Sir O
 

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