MF Global down 60% right now

Discussion in 'Stocks' started by Daal, Mar 17, 2008.

  1. gwb-trading

    gwb-trading

    #61     Mar 17, 2008
  2. What happened to the customer segregated funds rule and the fact that no FCM is supposed to be allowed to touch an account with customer segregated funds? It sounds as though some are suggesting that this is in fact a farce and not true at all.
     
    #62     Mar 17, 2008
  3. mokwit

    mokwit

    It seems cleverly constructed so that it appears there is protection when if fact in extreme circumstances there is not.
     
    #63     Mar 17, 2008
  4. They also trade in OTC markets as principal which is a key variable that most here are missing...
     
    #64     Mar 17, 2008
  5. mokwit

    mokwit

    Good point.
     
    #65     Mar 17, 2008
  6. Trader50

    Trader50

    well said
     
    #66     Mar 17, 2008
  7. Excellent point.
    Kudos!
     
    #67     Mar 17, 2008
  8. gnome

    gnome

    What's the significance to this to the potential risk of segregated accounts?
     
    #68     Mar 17, 2008
  9. I was also under the impression that the whole point of segregated funds is protection for the client.
     
    #69     Mar 17, 2008
  10. Buddha_E

    Buddha_E

    Segregated funds are meant for the futures accounts, while the Forex account are not cover for this protection. Look at Refco and it is a very good case study. My advise, take your money and get out. MF global is not the only brokering firm on wall street. I rather be safe then sorry. If the situation settle down, I can always open an account with them again.
     
    #70     Mar 17, 2008