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Mf Global Energy MTF

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Defunct Financial Company (2007-2011)

MF Global Holdings Ltd., formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting. MF Global Inc., its broker-dealer subsidiary, was a primary dealer in United States Treasury securities.² It was founded by Man Group.¹ Wikipedia text CC BY-SA 4.0

Last updated Oct 21, 2026.

Overview

Industryfinancial services¹
HeadquartersNew York City¹
Websitewww.mfglobal.com

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MF Global Holdings Ltd., formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting. MF Global Inc., its broker-dealer subsidiary, was a primary dealer in United States Treasury securities. A series of perceived liquidity problems and large fines and penalties dogged MF Global starting in 2008, and led to its bankruptcy in 2011.²

The story

Founded by Man Group.¹

History

Origins

MF Global traces its roots to the sugar trading business started by James Man in England in 1783, which evolved into broader commodities trading before its later transformation into a financial services business during the 1980s focused on commodity futures trading.

The 1900s: Growth, diversification

MF Global's former parent, then known as ED&F Man, diversified from pure cash commodities into commodity futures in the late 1970s, and established the Anderson Man futures brokerage in 1981. It later changed its name to "ED&F Man International" and then "Man Financial". ED&F Man operated as a partnership through to the 1970s, when it started an international expansion which, by 1983, increased its staff 650 employees. ED&F Man listed on the London Stock Exchange in 1994, changing its name to "Man Group" in 2000. Its agricultural business, which retained the ED&F Man name, was sold to management the same year.

The 1980s-Early 2000s: Acquisitions, expansion and brokerage unit growth

The rapid expansion of the Man Investments unit in the emerging hedge fund management business shrouded many investors from the development of its brokerage unit. Man Financial embarked on a series of acquisitions, which expanded its product capability and geographic reach, starting in 1989 with the purchase of the Chicago-based GNP Commodities, and including well-known industry names such as Geldermann, Tullett & Tokyo Futures, First American Discount Corp., Australia's Ord Minnett and GNI.

2002-2007: Acquisitions of a trading platform, client assets

The 2002 purchase of GNI was the largest of these and gave Man Financial access to the then growing Contract for difference market and GNI's trading platform GNI touch.

However, in 2005 Man Financial made its largest deal with the transformative $323 million acquisition of client assets and accounts from entities of Refco, following the U.S. financial-services group's collapse in late 2005. The Refco deal followed a hotly contested auction with Cerberus Capital, the private equity group, and boosted Man Financial's scale in retail and institutional business.

2007 Spin-off and going public

MF Global was the brokerage segment of Man Group until 2007, when the Man Group decided to split the investment and brokerage businesses so they could each focus on their own markets. Man Financial was spun off from Man Group as part of the initial public offering (IPO) and separation of the brokerage from the asset management operation. The brokerage business made the final identity change to MF Global simultaneously with that IPO, which occurred in June 2007. The then-separate investment business retained the name of Man Group.

The company was registered in Bermuda, but subsequently moved its registration and headquarters to the United States.

2008-2009: Major fines, liquidity concerns and stock price decline

On February 28, 2008, MF Global announced a bad debt provision in the amount of $141.5 million. The provision was the result of unauthorized trading by a representative in a MF Global branch office, who on February 27, 2008, while trading in the wheat futures market in his personal account, substantially exceeded his authorized trading limit. MF Global held a conference call at 11 a.m. EST on February 28 to discuss the matter. MF Global was fined $10,000,000 by the CFTC over the incident and an unrelated natural-gas incident from 2003. The CME Group also fined MF Global $495,000 over the wheat incident.

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On March 17, 2008, shares of MF Global plummeted on liquidity fears. The CME, ICE, Nymex and CFTC issued statements confirming MF Global was in compliance with regulatory and financial requirements.

March 2010: Jon Corzine named CEO

Jon Corzine, former CEO of Goldman Sachs, Governor of New Jersey, and United States Senator, began his tenure as CEO of MF Global in March 2010. Corzine spent nearly all of the 9 years prior to joining MF Holdings as either U.S. Senator or governor. From 1994 to 1999, Corzine held the role of chief executive officer for Goldman Sachs.

Auditor subpoenaed for clients' assets information

U.S. regulators subpoenaed MF Global's auditor, PricewaterhouseCoopers LLP, for information on the segregation of assets belonging to clients trading on U.S. commodity exchanges.

From Wikipedia’s article on MF Global, shared under CC BY-SA 4.0.⁴

Controversies and legal

Board of directors; criticism of Corzine, board

At the time of its bankruptcy filing, MF's board of directors included:

Jon S. Corzine, chairman and chief executive officer

David P. Bolger, independent member, formerly with Chicago 2016 and Aon Corporation

Eileen S. Fusco, attorney and CPA, formerly with Deloitte & Touche

David Gelber, independent member, formerly with ICAP PLC, Citibank NA, Chemical Bank and HSBC

Martin J.G. Glynn, independent member, former CEO of HSBC

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Edward L. Goldberg, founder of Longview Investments, formerly with Merrill Lynch

David I. Schamis, managing director at J.C. Flowers & Co., and

Robert S. Sloan, founder and managing partner of S3 Partners New York, formerly with Credit Suisse and Lehman Brothers

In the immediate wake of the bankruptcy, Corzine and the board were criticized in the financial press for their apparent non-awareness of the company's condition in the immediate lead-up to the event and their apparent inabilities to manage the risk the company had assumed.

Naming of bankruptcy trustees, controversy

Former Federal Bureau of Investigation director and federal judge Louis J. Freeh was named trustee for the MF Global holding company (MF Global Holdings Ltd.) bankruptcy case on November 25, 2011. This appointment was made just four days after Freeh was named to head the investigation for Penn State University trustees of the Penn State sex abuse scandal. For the MF Global bankruptcy case, Freeh was appointed by U.S. Trustee Tracy Hope Davis, working under the authority of U.S. Bankruptcy Court judge Martin Glenn.

Louis Freeh came under criticism following his appointment as MF Global Holdings bankruptcy trustee from politicians, commentators and former federal officials for trying to capitalize on cases such as MF Global and the Penn State sex abuse scandal, despite a federal career of his own that was fraught with controversy. Other experts and observers, however, found Freeh to be eminently qualified, and an excellent choice for trustee. These individuals expressed confidence that Freeh and his team could sort through the financial mess at MF Global, find the best possible legal resolutions to suggest and retrieve as much money for clients as possible.

Separately, James Giddens was named the trustee of the primary MF Global Holdings subsidiary, MF Global Inc., the broker-dealer.

SEC reviewed debt sales for insider trading fraud

In addition to other investigatory work, U.S. Securities and Exchange Commission also reviewed trades in MF Global Holdings Ltd. (MF) convertible bonds to determine whether some investors sold the debt based on confidential information before the firm's demise.

Bankruptcy trustee, regulators investigate missing client funds

Clearly, client (or customer) accounts were misused to try to cover the bet made on European sovereign debt. Beginning in November 2011, MF Global was investigated by regulators for money missing from client accounts. The shortfall in client accounts at MF Global Holdings Ltd was thought to be around $1.2 billion as of late November 2011, according to the trustee liquidating the company.

As the trustees and liquidators continued their work in early 2012, they indicated that the total amount owed to clients was substantially higher. Rolling Stone reported in April 2012 that the number stands at $1.6 billion, and that "nobody disputes the fact that MF Global officials dipped into customer accounts and took...customer money."

US and UK investors continued waiting to see if and when they would be repaid for the misuse of their client account monies.

However, because rehypothecation is not allowed in Canada, the Canadian customers of MF Global were able to recover all their funds within 10 days.

Settlements

With, among other sources of cash, Corzine and other former MF Global executives in 2016 reaching a $132 million settlement with a trustee liquidating the company on behalf of creditors and, in 2015, executives having reached a $64.5 million settlement of separate investor litigation, portions of which were covered by insurance, all customers (as of 2014) and other claims on MF were settled.

Fine and lifetime ban

In early January 2017, Corzine accepted a settlement with the CFTC including a $5 million fine to be paid "out of his own pocket rather than from insurance [and] a lifetime ban from CFTC markets". DOJ had, earlier, declined CFTC's request that it prosecute Corzine.