PwC, which provided auditing and accounting experts, failed to advise the firm to account properly for its European sovereign debt holdings, leading it to invest too much in them, MF Global said in a complaint.
The MF Global debacle was really a slow motion car crash. There were numerous red flags going back a year and the bottom line is that according to the initial bankruptcy filing, there was capital within MF Global Holdings to cover the shortfall in customer segregated funds but the appropriate regulatory authorities did not demand those assets
As we are all well aware, the last two years have been the most challenging for the futures industry in the almost 80 years the two of us, collectively, have been in the business. The collapse of MF Global and the uncovering of the Peregrine Financial Group (PFG) fraud brought about the questioning of systems and procedures believed to be safe
How about those traders so faithful of the futures industry that they left millions in their MF Global account because they though the guarantee of segregation was safer than the limited FDIC guarantee?
There are four futures exchanges in China that list 31 commodity futures contracts and one financial futures contract. All major commodities, some of which have the highest markets share globally, are listed except for crude oil.