MF is the second largest clearing firm on the NYMEX. Maybe a connection on a huge position that is subjected to counter party risk.
Something's been wrong for a very long time. However teflon U.S. Markets are invincible and impervious.
Has to be a blow up of some sort. 14m shares traded vs average of 2m. Only Wellington and Fidelity hold near that amount - (but GS has 3m) so suggests more than one seller so something is known to multiple parties. Largest holders are not leveraged hedge funds so not selling for their own internal reasons, although it is conceviable a smaller seller duming could have set off others in a cascade.
11:37 MF MF Global: Color on stock action (5.20 -12.13) -Update- MF has plunged 70% today, on no apparent news. In late Feb the stock got cut in half after the co disclosed an unauthorized trading loss related to an employee that took a wheat futures position in his personal trading account that went the wrong way... We're hearing a couple of rumors circulating about today's weakness, including the following 1) chatter about the co's exposure to repos, and 2) concerns about a lawsuit regarding co's risk management... We're still checking around, and have left a message with the company.
Let's be CLEAR about this, Mann is a COMMODITY BROKERAGE! They are #1 in clearing for the CBOT and CME, and #2 on the NYMEX.