Sunday, November 6, 2011
Tuesday, November 1, 2011
Collapse of MF Global
We watched our company go down within a 48 hour time span, scariest thing I ever experienced in my professional career. Here is a general timeline of how it went down (sourced by MetalBulletin)
Monday October 31, about 09:00 GMT: Rumours circulate the market that MF Global business is in financial difficulty and the brokerage is in discussions to sell to a rival firm.
Monday October 31, about 13:30 GMT: Rumours that all of MF Global’s London staff have been told to leave the office are found to be untrue as employees still answer phones.
Monday, October 31, about 15:00 GMT: CME limits all trading for customers of MF Global for liquidation only, and blocks floor brokers and traders from the trading floor.
CME issues warning: “Effective immediately, and until further notice, CME's Emergency Financial Committee, in accordance with rule 975, is limiting all trading for customers of MF Global for liquidation only.
“In addition, and until further notice, CME Group will no longer recognize MF Global or any of its divisions as a guarantor for purposes of floor trading privileges. Accordingly, floor brokers and traders guaranteed by MF Global or its divisions may not access the trading floor. The foregoing actions have been taken based on circumstances regarding the financial condition of MF Global.
"CME Clearing will process any transfers at the last settlement price at the request of customers. Such positions will need to be re-margined at transferee firm. Customers wishing to execute a liquidating trade should contact MF Global."
Monday, October 31, about 15:45 GMT:
CME issues warning: “Effective immediately, and until further notice, CME's Emergency Financial Committee, in accordance with rule 975, is limiting all trading for customers of MF Global for liquidation only.
“In addition, and until further notice, CME Group will no longer recognize MF Global or any of its divisions as a guarantor for purposes of floor trading privileges. Accordingly, floor brokers and traders guaranteed by MF Global or its divisions may not access the trading floor. The foregoing actions have been taken based on circumstances regarding the financial condition of MF Global.
"CME Clearing will process any transfers at the last settlement price at the request of customers. Such positions will need to be re-margined at transferee firm. Customers wishing to execute a liquidating trade should contact MF Global."
Monday, October 31, about 15:45 GMT:
MF Global Holdings posts a statement on its website saying it has filed for Chapter 11 bankruptcy protection in the USA.
Monday, October 31, about 18:00 GMT: LCH.Clearnet issues a notice to all its clearing members stating it “has issued a default notice in respect of MF Global UK Limited”.
"We refer to LCH.Clearnet SA’s Clearing Rules (Rulebook Title IV – Chapter 5 – Event of Default), we hereby declare MF Global UK Limited (in Administration) to be in default.
Monday, October 31, about 18:00 GMT: LCH.Clearnet issues a notice to all its clearing members stating it “has issued a default notice in respect of MF Global UK Limited”.
"We refer to LCH.Clearnet SA’s Clearing Rules (Rulebook Title IV – Chapter 5 – Event of Default), we hereby declare MF Global UK Limited (in Administration) to be in default.
Monday, October 31, 18:36 GMT:The LME issues the following statement saying it has suspended MF Global from trading after LCH.Clearnet default
Monday, October 31, 23:41 GMT:
The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) says attempts to sell MF Global to another firm had fallen through and reports “possible deficiencies”.
Tuesday, November 1, 08:30 GMT:
The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) says attempts to sell MF Global to another firm had fallen through and reports “possible deficiencies”.
Tuesday, November 1, 08:30 GMT:
Rumours flood the market that up to $700 million could be missing from MF Global accounts.
Tuesday, November 1, 09:00 GMT:
Brokers and MF Global’s clients scramble for clarification on the status of trades executed on Monday prior to the ring dealer’s default at the clearing house LCH.Clearnet.
Brokers and MF Global’s clients scramble for clarification on the status of trades executed on Monday prior to the ring dealer’s default at the clearing house LCH.Clearnet.
Tuesday, November 1, 11:14 GMT: LCH.Clearnet tells MB it is working with administrators KPMG to ensure all trades executed on October 31 are processed as intended.
Tuesday, November 1, 13:34 GMT:
MF Global's head of commodities Fred Demler is attempting to find someone to take on the metals unit of the brokerage which entered Chapter 11 bankruptcy protection in the USA on Monday, market sources told MB.
Tuesday, November 1, 13:34 GMT:
MF Global's head of commodities Fred Demler is attempting to find someone to take on the metals unit of the brokerage which entered Chapter 11 bankruptcy protection in the USA on Monday, market sources told MB.
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