Statement Regarding MF Global, Inc.
The Federal Reserve Bank of New York has informed MF Global Inc. that it has been suspended from conducting new business with the New York Fed. This suspension will continue until MF Global establishes, to the satisfaction of the New York Fed, that MF Global is fully capable of discharging the responsibilities set out in the New York Fed’s policy, “Administration of Relationships with Primary Dealers,” or until the New York Fed decides to terminate MF Global’s status as a primary dealer.
Update (12:52pm, London time): MF Global’s London operations, which can be traced back over two centuries to its days as a Thames-side sugar brokerage, are also being hit on Monday. Email from its spread betting arm:
Dear Client,
MF Global UK Limited has taken a strategic decision to discontinue with its Spread Betting business with immediate effect. We therefore require clients to either post 100% value against long positions or to liquidate their positions today. For those clients holding short Spread Bets, then we require these positions to be closed today.
Should you wish to move your Spread Betting position at MF Global to another provider then we will do what we can to assist and facilitate such a move.
Related link:
MF Global coverage – FT Alphaville