Startyed with a share price slide...then mild "commentary" hinting at potential short-term issues...and now the escalation to a potential filing for bankcruptcy.
In this space, when things go wrong, they do so relatively quickly.
I withdrew all the funds from my CFD account about a week ago...that is, all but a couple of hundred dollars.
Tried to withdraw that today...but the funds have been frozen.
thnakfully, the amount is insignificant, but I feel for those with serious funds in the balance here.
Opes Prime comes to mind...and the fact ANZ is being so forthright and absolutely transparent in their disclosure to clients about the current state of affairs, proves two things;
1. They learnt their expensive lesson with the Opes Prime fiasco and;
2. They clearly expect MF Global will grab their clients money in a similar way to what Opes did.
I hope for the sake of all those with funds in MF Global, this is sorted...and sorted fast.
One thing that will probably come out of this is a rapid closing out of positions from clients, not only due to the increased margin now required by the CFD provider, but the simple fact most will want to get out as quickly as possible.
Interesting to know the net result on the market...are most of the CFD contracts currently in the market shorts...or longs?
My guess, given the rather toppy nature of the wider market of late, most will be shorts.
