Over roughly the past decade, MF Global was sanctioned half a dozen times and fined a total of $12 million, including a $10 million fine levied in 2009 for "significant supervision violations" that occurred during the five years prior, according to CFTC enforcement archives. One 2008 infraction alone cost $141 million in trading losses on wheat futures. http://bottomline.msnbc.msn.com/_news/2011/11/11/8755881-hunt-intensifies-for-missing-600-million How does the public get access to this infraction information? Good way to see the smoke before the fire and move your assets.
The rouge trader who lost 140 million was public info. http://www.msnbc.msn.com/id/23388778/ns/business-us_business/t/rogue-futures-trader-accused-m-loss/ The second thing that was obvious with MF Global was that is was down 90% off its IPO price for many years now. Even if you cant read company financials you can look at the share price chart, takes about 5 seconds and maybe a minute to compare the chart against peer companies. This is not all obvious only in hindsight.. i was evaluating other brokers (currently with IB) a year ago.. the MF global stock chart just put me off the company straight away.
Anyone trading futures should become familiar with NFA Basic: http://www.nfa.futures.org/BasicNet/CaseInfo.aspx?entityid=0326888&type=reg The exchanges used to fine you for all kinds of procedural stuff: wearing the wrong coat, drinks, improper time stamping.... old world stuff. There is nothing in the record before Oct 2011 that would have made you conclude this was coming. I was literally told by a fund of funds that "no institutional investor" would put a cent in me at my current FCM, and I should move to his preferred choice: MF Global.
Bullshit. Beside the above mentioned stock price: "$40 of liabilities for every $1 of assets." There is a Corzine quote from April or so that he intends to use more leverage to have more risk... There you have it....
Well, I hope you spend the millions you made buying MF puts wisely. More seriously, the industry is shocked by this for a very good reason. I don't begrudge you the right to brag about your remarkably prescient prediction about MF, but the point remains: ALL of those working in this industry, people who's livelihoods and careers depends on being informed, did not see this coming.