MF Global Canada Co. agreed to have its membership suspended by regulators and to cease dealing with the public as the firm’s parent company enters bankruptcy.
On Tuesday, a hearing panel of the Investment Industry Regulatory Organization of Canada held an expedited hearing that saw MF Global Canada consent to an order that the firm be immediately suspended from membership in IIROC and that it immediately cease dealing with the public.
Similar steps have been taken in other jurisdictions where the firm’s parent company, MF Global Holdings Ltd. operates. It filed for bankruptcy in the U.S. on October 31, and on November 1, MF Global Canada acknowledged to regulators that it is capital deficient.
IIROC staff applied for the order to suspend the firm in order to protect client assets. The order enables IIROC staff to permit the firm to execute liquidating trades to facilitate the orderly transfer of client accounts. The firm is also required to report to IIROC every 30 days regarding any action taken pursuant to the order, until all MF Global client accounts have been transferred to third party firms.