The MF Global scandal might negatively impact the commodities markets on Friday. From a comment on Harvey's blog:
From the ZH link:Harvey, MF Global appears to be short 1.5 billion per Zero Hedge.
The liquidation order says customer accounts that are NOT transferred by November 4th (Friday) will be liquidated in the market.
Here is the court motion:
Here is Part 11.
11. The Trustee has determined that the Account Transfers will contribute to the prompt satisfaction of customer claims and the orderly liquidation of MFGI. Without effecting these transfers, the positions are required to be liquidated promptly and in an orderly manner. As set forth more fully below, the customers’ positions are required by Part 190 Regulations to be liquidated if they are not transferred to a transferee FCM before the close of business on Friday, November 4, 2011 (the fourth business day after the entry of the MFGI Liquidation Order). The liquidation of these customer commodity positions in all likelihood will negatively effect the net value to the customers and the markets in general.
How can they transfer them all if they are short of money?
Friday is a mass liquation day for 50,000 commodity accounts??? And the CFTC has no issue with this?
Am I reading this right?
... "As a result of the apparent segregation violations and the suspension of clearing privileges, more than 150,000 customer accounts essentially were frozen on October 31, 2011, of which more than 50,000 accounts were regulated commodities customer accounts. ...