Bloomberg is reporting that MF Global may have transferred its customers’ money in the last days before its demise, as a CME Group audit of the firm last week was clean.
CME Group runs the Chicago Mercantile Exchange and is one of the regulators responsible for oversight of MF Global.
This means that MF Global may have only dipped its hands into its client funds amid the financial turmoil that rocked the firm in its final days – when they saw share prices drop over 65% in the last five days of trading before the company filed for bankruptcy this Monday.
The discovery of the missing funds was MF Global’s final downfall, as it broke off the deal that Interactive Brokers had all but inked to buy MF Global late Sunday night. The latest figure sets the missing funds at around $600 million to $700 million.
The transfer of money was not reported and was possibly done in a certain way to “avoid detection,” Bloomberg is reporting. This isn’t good news for MF Global, as it shows the company intended to use clients’ money and made an effort to avoid getting caught, but this could also mean the firm ran a clean operation before its stock started slipping and they turned to desperate measures at the last minute.
CME Group’s statement on the matter is also reporting that MF Global’s trades have been liquidated with little market impact, and that a substantial amount of money remains to be applied towards money MF Global owes CME. This could be good news for clients, as they could see more money flow in.