MF Global bankruptcy could rattle silver for days
By Dr Jeffrey Lewis
CommodityOnline.com
It now appears that the 200 year old trading and processing firm MF Global will go into bankruptcy following rumors that the firm did not have enough capital on hand to protect accounts. The company, which has seen its share price tumble by more than 85% this year, is expected to send several waves through the commodities market, mostly due to its expansive reach.
Through a restructuring plan that would allow the CME Group to go public, the operator of major global exchanges privatized market-making and clearing functions to companies like MF Global. Earlier on Monday, it was reported that smaller firms which routed orders to MF Global for batch processing were experiencing difficulties placing trades. Later, it was made public that MF Global would not process new trades, and instead only allow for the liquidation of investments held by the firm on behalf of clients.
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