Margin Account for leveraging - Unexpected risks and losses! (2)

Createwealth8888:

 "Under Singapore law, customers’ monies and assets cannot be co-mingled with the firm’s assets."

So what? Can the law really protect us when the crooks don't follow the law?

The moral of the story: Money in our own pocket is still safer.

Again, it reminded me of CAO. Because of financial fraud, ex-CEO went to jail. So what? Did it really matter to me? No. My money still gone.

Read? Margin Account for leveraging - Unexpected risks and losses!

Nearly half of MF Global Singapore client monies held abroad


November 12, 2011

SINGAPORE, Nov 12 ― The Singapore unit of bankrupt US brokerage MF Global said late yesterday that nearly half the US$309 million (RM973.35 million) held in its segregated client accounts are with financial institutions outside the city-state, indicating the difficulty faced by liquidators in retrieving customers’ money.

Under Singapore law, customers’ monies and assets cannot be co-mingled with the firm’s assets, giving clients of financial institutions than run into difficulty some measure of protection.

MF Global Singapore said US$160 million in client assets are with financial institutions in Singapore, while the remaining US$149 million is held in Malaysia, Hong Kong, United Kingdom, Dubai, Indonesia, and Taiwan.

“The provisional liquidators have written to relevant third parties to ask for a full account and the immediate return of such monies and assets,” MF Global Singapore said in a statement.

It added that all its customers’ open positions on the Singapore Exchange (SGX) have been closed out or transferred.

“Based on the records of the company, excess margins amounting to about US$40 million in respect of customers of the company are currently maintained with and held by SGX,” it added.

MF Global filed for bankruptcy in the United States after risky bets on debt from troubled euro zone nations scared away clients and investors.

The liquidators in Asia are trying to sell its operations in the region as one concern but struggling to do so because of problems unwinding trading positions, so they may now sell the various country units separately. ― Reuters