Nah, as long as Jumpin' Jack Hershey is still trading, everything will be fine. He recommends trading no more than 250 emini contracts, but we all know he doesn't follow his own rules. In fact, I bet he makes 10X the daily range, not the more humble 3X he says is possible. To put in Chuck Norris-eque terms: Jack Hershey doesn't supply liquidity to the market. The market falls on its knees and offers abundant liquidity in the mere presence of Jack. Jack could pay back all the MF clients in a heartbeat, but would make them learn his methods first. It would be easier for them to translate Shakespeare from Latin to Mandarin backwards in a dark cave using only stone tablets.
Looks like the payout request went through. http://news.yahoo.com/judge-oks-520-million-payout-mf-global-customers-173458243.html Still not sure how/if certain customers such as myself will be able to share in this payout if we had tiny open positions transferred to a new broker. My open position was a 1-lot in cotton options that was worth $5 and about to expire, and was transferred while the rest of my account consisted of cash, which is still frozen at MF. Wonder how the trustee will look at accounts such as that. Good luck everyone, hope your cash comes through.
Here is the response from OCC "Dear Sir MF Global was not an OCC supervised institution. You would want to contact the Trustee, James Giddens. His information can be found at: http://www.hugheshubbard.com/James-W-Giddens/" ------------------ Sirs Please see email string below but I would appreciate a response. I am a "former" MF Global client with exactly $(xxxxx) in cash in my account as of October 31, 2011. I held no open positions. I am now being told I am a "creditor" for my cash position Thank you Signed -------------- RE: Client segregated cash is not an asset of MF global. Clients are not creditors... By not immediately distributing client funds and by transferring and accepting client cash funds into the liquidating trust the trustee is operating an unlicensed and unchartered bank. Unauthorized Banking is a financial crime. An unauthorized bank is any financial institution operating without a license or charter. You can report information you have about such institutions to the OCC via E-mail: OCCAlertResponses@occ.treas.gov Fax: (202) 874-5214 Mail: Office of the Comptroller of the Currency Enforcement & Compliance Division MS 8-10, 250 E Street SW Washington, DC 20219 http://www.occ.treas.gov/topics/ban...ed-banking.html
That company is NOT a 'large commodities fund.' They don't manage any money at all. What a silly viewpoint!!! AT OUR CTA, WE'RE STILL DOING BUSINESS and opening new accounts at stable, privately-held FCMs, like Dorman Trading, Rosenthal Collins Group and others. Look, MF Customers will ultimately get back, in our view, 88 - 100% of their monies and those responsible for any 'missing' funds will GO TO JAIL. Trust me. We Chicago guys aren't going to stand for any situation where nobody is charged criminally for theft, larceny, wire fraud or other violations. I'm as furious as anyone, believe me. But there's no way I'm throwing in the towel. Go to that company's website....they are quoting scripture on their main page. It's not exactly the most professional outfit, or worthy of any press. EDIT: It looks like Denner's post disappeared. Guess they pulled it.
Ok, that didn't make me feel any better. Which Chicago guys are you referring to? From Capone to the current administration and their cronies, Chicago has its share of folks who thrive in the violations you just named!
CTAs in Chicago; CME and CBOT members. I agree with you, of course.... F*ck R*hm Emannuel and these other crooks. Our futures markets were sacrosanct; this NY *hole and I-banker types screwed up a very good 200-year old company.
... well, I mean, what we call MF Global today wasn't exactly a very good company 5 years ago. http://en.wikipedia.org/wiki/Refco But I will say, that I previously was encouraged by the fact that *customers* recovered from a disaster like Refco without losing a penny, or even being seriously inconvenienced. The MF Global situation is exactly the opposite. People are going to lose money, *and* the inconvenience level is off the charts. Very disappointing all around. I'm just glad that this blew up this month, rather than during the holiday season... can you imagine trying to get stuff straightened out, just as liquidity dried up?
Bankster greed killed liquidity by obsoleting the 'floor'. Now screen traders have to consider both the markets and the condition of their brokers for a full picture of risk. It's a direct attack on the clearing house model. Regulated futures might as well become OTC instruments. If this short fall stands small specs will exit en mass. The loss of liquid markets will deliver volatility that no one will be happy with. Thanks Jon C. I hope you and JPM get caught up in your lies. 60 cents on the dollar ain't gonna fly.