MF Global was a major global financial derivatives broker, or commodities brokerage firm providing exchange-traded derivatives like futures and options as well as OTC products such as CFDs, Forex.
In February 2008, one of MF Global’s commodities traders attempted to trade for his own profit, while the firm’s risk management software was turned off; but the trade went badly and resulted in a loss of $141 million for the firm, plus over $10.4 million in fines for risk supervision failure. MF Global also made a failed $6.3 billion investment in bonds of some of Europe’s most indebted nations repurchase agreement positions which further heightened the massive liquidity crisis at the firm leading to them declaring bankruptcy on October 31, 2011.
Today, the CFTC announced that it has obtained a federal court consent order against Defendant MF Global Holdings Ltd. (MFGH) requiring it to pay $1.212 billion in restitution or such amount as necessary to ensure that claims of customers of its subsidiary, MF Global Inc. (MFGI), are paid in full.
Regardless of previous litigation, which began against the individual directors of MF Global that commenced in 2013 that has resulted in very severe penalties, the CFTC’s case continues against the remaining Defendants, Jon S. CorzineJon and Edith O’Brien who were the CEO and MF Global’s assistant treasurer, and MF Global’s former leader respectively.