CFD's, Collapse of MF Global

[mistagear]

In Reply To: mrbear's post @ Nov 6 2011, 06:28 PM

Lets sort something out here.

MF Global went under because they used their own money to buy Spanish and Italian bonds. Value has dropped substantially which forced MF G to report a huge loss. This in turn created a lack of confidence by investors, clients and rating agencies.

With more capital and less borrowing, MF Global would still be in business, biding its time and waiting for the European Central Bank to rescue Italy and Spain. (The company is also alleged to have mixed client money with the firm's — a separate, very serious problem.

Clients funds of MFG in Aus are involved because MFG did not segregate clients funds from the Company's.

The CFD provider I use does segregate client funds, I'm not aware if CMC do. If not, any funds in Mr Bears account may be at risk even though no trades are current.

This thread seems to be a bashing exercise at CFD's whereas the problem has been caused by something entirely different, and the problem for MFG's Aus clients is they did not understand the risk in dealing with a company who did not segregate client's monies.

[mrbear]

In Reply To: mpl's post @ Nov 6 2011, 05:01 PM

I use comsec and cmc and no one i know uses global,the more this happens though tends to make you run for the covers of a solid reputable firm.

I myself at the moment am not trading any leveraged product nor anything that is not rock solid and pay a big div.

The market is so jumpy and could easily plunge 20% in a heartbeat and i am not willing to have serious capital in the market that will not give me a good return in divs should that happen,cheers mrbear

[arty]

In Reply To: wolverine's post @ Nov 5 2011, 10:37 PM

I am surprised to hear so few people on SS have been affected by this collapse.

With the benefit of hindsight, I am no longer so surprised; I ran a stat over the month of October and found only half a page worth of trades under MFG - for the entire month!
Maybe they weren't as active after all?
By comparison, on 31/10 and 1/11, CMC was actively trading well over 500 instruments, whereas MFG showed nothing.
OK, so my report could be wrong - but I doubt it.

[wolverine]

In Reply To: arty's post @ Nov 5 2011, 08:09 PM

It's a strange situation for traders to still be wondering if they have closed positions or not (at least that is what I read).

[wolverine]

In Reply To: mrbear's post @ Nov 5 2011, 06:40 PM

Hi mrbear

I don't use CFD's and I have long expected a lot more pain for the retail investors with the growth in use of them. I am surprised to hear so few people on SS have been affected by this collapse. I guess this will bring the spotlight on other providers.

[Brierley]

In Reply To: arty's post @ Nov 5 2011, 09:33 PM

I doubt the "freely" bit. I know that it is available. It's part of a data service that I pay for, and to me it's worth it.
Maybe ask your Broker?

Ok, Thx. You saved me a wild goose chase looking for a free source of that info.

[arty]

In Reply To: Brierley's post @ Nov 5 2011, 09:06 PM

Are broker codes for past trades freely available info ?

I doubt the "freely" bit. I know that it is available. It's part of a data service that I pay for, and to me it's worth it.
Maybe ask your Broker?

[Brierley]

In Reply To: arty's post @ Nov 5 2011, 08:09 PM

Maybe not directly, but indirectly, I reckon, we all have been affected.
In a couple of days, when broker codes are released for past trades, we'll see how many liquidations have occurred. And I believe there may have been plenty, pushing some of the "favourites" undeservedly down.

Arty
Are broker codes for past trades freely available info ?
If so, can you provide a link ?

[arty]

In Reply To: wolverine's post @ Nov 5 2011, 02:43 PM

Has anyone been directly affected?

Maybe not directly, but indirectly, I reckon, we all have been affected.
In a couple of days, when broker codes are released for past trades, we'll see how many liquidations have occurred. And I believe there may have been plenty, pushing some of the "favourites" undeservedly down.

Luckily I've not been with them; my CFD provider is CMC.

[mrbear]

In Reply To: wolverine's post @ Nov 5 2011, 02:43 PM

I have trouble trading the long unleveraged side these days wolver let alone cfd's,puts,options,cheers mrbear