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
What was clear is that more than three years after the Dodd-Frank Act was passed and with many deadlines missed and more deadlines on the horizon there is a massive amount of confusion regarding how these products are to be regulated.
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 a lot of folks in the Futures industry who would have liked the commission to have declared bankruptcy a year or so ago before writing rules likely to put their businesses on the edge of solvency.