Man, oh Man! « Mining Blog

Man, oh Man!

8. November 2011,

Man Financial Ltd was, until 2007, a major British futures’ trader and hedge fund, which also sponsored the renowned annual Man-Booker book prize.

It formed the brokerage division of the huge UK-based Man Group plc until this was “spun off” in July that year in an initial public offering (IPO) at the height of the boom in derivatives trading.

Renamed MF Global Holdings Ltd, it was, until October 2011, also a member of the London Metal Exchange trading “Ring” [MJ special supplement September 2006].

In October 2011, MF Global field for bankcruptcy in New York,as it grossly breached compliance with “customer segregation requirements” on the world’s leading derivatives market, the CME (Chicago Mercantile Exchange).

In effect, MF had failed to separate “client” funds from “proprietary” funds managed by the institution itself. In key respects its operations had mirrored that of Lehman Brothers International, prior to that bank’s spectacular collapse in 2008.

Following MF Global’s demise, the London Metal Exchange (LME) suspended all “Ring” dealings by MF Global UK Ltd in October this year.

Man Group plc itself must now be breathing a sigh of relief, at having off-loaded its subsidiary four years ago, though there’s no suggestion (as yet) that the UK company itself in engaged in such dubious practices while it was managing the Fund.

Man Group plc itself claims to be “a world-leading alternative investment management business”, with “expertise in a wide range of liquid investment styles including managed futures, equity, credit and convertibles, emerging markets, global macro and multi-manager, combined with powerful product structuring, distribution and client service capabilities”.

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