MF Global - Wikipedia

But months later, regulators are scrambling to deal with the collapse of another brokerage firm. After discovering accounting irregularities, regulators on Monday essentially shut down PFGBest, a prominent player in the small world of futures trading.

Behind the Collapse of MF Global | sanapidyqel.web.fc2.com

While regulators are still trying to piece together what happened, the National Futures Association said the bank statements from U. Bank, where the money was held, might have been fabricated.

The discrepancies date back a couple of years. The loss of customer capital — just months after the bankruptcy of MF Global — could have major implications for regulators. Authorities recently conducted reviews of brokerage firms in the wake of the MF Global scandal, and found nothing alarming.

The futures group did not immediately respond to requests for comment.

Leading Cash and Derivatives Broker-dealer | MF Global

Regulators said Monday that no one would be allowed to withdraw their money from the firm for the time being. On Monday, the association received information that Mr. In the futures industry, customer money is not insured, meaning that if the cash is not recovered clients will have little recourse.

Regulators have proposed a number of fixes, including setting up an insurance fund to guarantee the money. Futures customers should be protected like banking and security customers are protected.

PFGBest is one of a handful of futures firms, which essentially line up buyers and sellers of futures contracts for commodities. The firm was wholly owned by Mr. But the industry has been under fire in recent years. Commissions have flattened, as new entrants and online trading take a bite out of business.

Even the interest typically earned for simply holding customer money has been close to zero, amid the low-rate environment in the United States. But the bets that Jon S. Corzine made as leader of MF Global were too risky, the market lost confidence and the firm went under.

He was flown to University of Iowa Hospitals and Clinics in critical condition.

In addition to his financial firm, Mr. He also serves on the FCM Advisory Committee of the National Futures Association. PFGBest has previously faced scrutiny. Sections Home Search Skip to content.

The New York Times window. Subscribe Now Log In 0 Settings. Close search Site Search Navigation Search NYTimes. Clear this text input. By Azam Ahmed July 9, 8: Ben Protess contributed reporting.