MF Global Holdings Ltd. (MF), which the New York Stock Exchange is delisting following the brokerage’s bankruptcy filing, will begin trading tomorrow on the over-the- counter venue run by OTC Markets Inc.
MF Global shares haven’t changed hands during a regular trading session since Oct. 28, before yesterday’s Chapter 11 filing. They will start being quoted over the counter tomorrow under the symbol “MFGLQ,” OTC Markets Chief Executive Officer R. Cromwell Coulson said in an e-mail today.
The company is “no longer suitable for listing,” NYSE Regulation Inc., a unit of NYSE Euronext, said in an e-mail today. MF Global fell 67 percent last week to $1.20 before the company sought bankruptcy protection.
OTC Markets, based in New York, runs an electronic quotation system for securities not listed on exchanges.
MF Global said it failed after getting margin calls spurred by disclosure of more than $6 billion of European government debt investments. It told regulators client accounts had “deficiencies,” the Commodity Futures Trading Commission and Securities and Exchange Commission said yesterday.
Suspension of the shares on NYSE followed restrictions on the company from operating on various venues. MF Global was earlier suspended from trading on the London Metal Exchange. CME Group Inc. (CME), the largest futures market, also suspended the broker-dealer unit MF Global Inc. as a clearing member.
When companies announce plans or file for bankruptcy, the exchange has “sole discretion” on whether to start an evaluation that could end in a suspension and delisting, according to the NYSE Euronext listed company manual. Should the exchange determine a company is below listing criteria, it notifies the company within 10 business days, and the company is required to issue a press release saying it received the notification, according to NYSE Euronext.
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