Not in the bulge bracket, but recent market volatility appears to have claimed another scalp - Gibralter-registered spreadbetting firm FuturesBetting.com.

A statement indicated that it had been caught up in the recent Global Trader affair:

It is with regret that FuturesBetting.com has had to take this action; however it is the priority and responsibility of the firm, as a regulated entity, to protect client funds. The reason for the decision to require all clients to close their positions is because the Company can no longer meet its capital adequacy requirements. Unfortunately FuturesBetting.com has been caught up in the financial crisis of Global Trader Europe and a significant proportion of the company’s resources have been ‘frozen’ along with that of all of Global Trader Europe’s other clients.

We have informed the Gibraltar Regulator of the situation and have agreed that the Company will cease trading with immediate effect.

Clients were being asked to close their positions by end of trading on Friday.

Solange die Kundengelder ausgezahlt werden, kann es den Tradern schnuppe sein, was mit dem Laden passiert.
Früher oder später wäre das vermutlich sowieso passiert.

Bears gorge on MF Global

Is this the market eating itself? If so, brunch for Wall Streeters on Monday was MF Global, the former brokerage arm of Britain’s proud hedge fund colossus Man Group.

Rumours surrounding the firm, which bought the defunct Refco the year before last, were spurious at best - a “repo issue” and/or “class action suits related to the rogue wheat trader” were the stories reaching FT Alphaville.

But the damage to MF’s equity was real enough - shares down 75 per cent at one stage, helping to slice 12 per cent off the price of Man Group, despite the fact that the British firm demerged what was Man Financial last year.

Think about it - 75 per cent. A firm that was worth $3.6bn at the end of February, was worth $2bn on Friday and then $600m on Monday. Without any news…

Reiterates Strong Quarter-to-Date Performance

NEW YORK NEW YORK--(BUSINESS WIRE)--March 17, 2008--MF Global Ltd., a leading broker of exchange-traded futures and options, issues the following statement in connection with today's market activity:

MF Global understands the significant concerns across the markets. Our clients continue to show strong support, and our counterparty relationships are sound. We are seeing no impact on our repo lines. In addition, MF Global has no exposure to sub-prime mortgage-backed securities that have been the root cause of the current market environment.

While the company uses third party repo lines, we have alternative funding in the event those lines are not available to the company. The company is very well capitalized with $1.4 billion in a committed, undrawn credit facility.

As previously-announced, as of today, volumes and net revenues for the current quarter to date remain at higher levels than in any comparable period during the current fiscal year. In addition, client funds are at a higher level today than on February 27, 2008, or at the end of the third quarter ended December 31, 2007.

Joe Lewis is not a client of MF Global.

The company is providing this information because it plans to meet with investors and analysts over the coming days and weeks. MF Global intends to provide further information about these matters when it announces results for the current fiscal year ending March 31, 2008.

Es stellt sich noch eine weitere Frage.
Was passiert mit denen die überleben? Wenn die Vola die Kundengelder dahinrafft...

FFastFill has supplied the direct market access (“DMA”) spread betting platform to FuturesBetting.com since March 2005 and LCG reviewed the relationship and system as part of its acquisition due diligence. FFastFill provides FuturesBetting.com with trade execution and risk management software and 24 hour technical support.