mf global and etrade, page-45

Av8or,

I would think your shares are safe as they will be held in your direct name however I would not trust any funds you have as being safe. They should be, but based on Etrade's behaviour and if you do some looking around their website there are disclaimers that they have no responsibility for ANZ and ANZ have no responsibility for Etrade. ie they stand alone. Given that they call themselves ANZ Etrade its a pretty interesting view of the world and designed to mislead. They want you to think you are dealing with a bank and all that entails but in fact it is far from it.

Interestingly my ( and I am sure everyone else's) CFD statements are MF Global in one corner and Etrade in the other. The statement today also don't identify that they are in administration which I would think is probably not kosher from a legal point of view. I would almost bet it is Etrade pumping out the statement as well.. so again who are we dealing with?

I still think that given Etrade's CFD product is a retail product and the various ploys that Etrade and ANZ have had in play to mislead that in the long run if the free equity is not there then they will probably have to kick the bucket on this. They can do it voluntarily or there is going to be class action on it.

You would think that given how CFD's in particular work that there should have been coverage against the positions as most people have coverage in their accounts to at least cover a couple of days movements in price. The problem of it now being in administration is whether everyone is all lumped in together with all the other leveraged products and derivatives. You just don't know what they have been into.