On its website, MF Global lists itself as:
"A leading broker of exchange-listed and OTC-traded energy futures and options, [offering] an extensive, global pool of liquidity and access to trading opportunities across all major energy markets...
an early and active participant in the new dimensions of the energy markets as well as the markets for freight futures, and OTC fuel oil, coal and iron ore swaps...and
a leader in the markets for metals and other industrial materials is based on more than 30 years of excellence in the core functions of market making, order execution, trade clearing and contract administration for metals and plastics futures, options and OTC products."
Impressive. But now MF Global filed for bankruptcy protection, is being investigated by the the Commodity Futures Trading Commission for $600 million missing from customer accounts and former NJ Governor and former Senator Jon Corzine, right, has resigned as its president.
So how will this affect energy markets? Probably not at all. A competitor will step in and replace them without much notice. Of course, if you are one of the customers looking for your money on energy and precious metals speculation, you will probably be left holding an empty bag. According to MF Global:
"We help clients trade a vast range of commodities and financial instruments in markets and countries around the world. MF Global operates on more than 70 financial exchanges and is one of the leaders by volume on many of the world’s major futures exchanges."