RT Journal Article SR Electronic T1 Five Factors in the Failure of MF Global JF The Journal of Wealth Management FD Institutional Investor Journals SP 99 OP 103 DO 10.3905/jwm.2012.15.2.099 VO 15 IS 2 A1 Colin Read YR 2012 UL https://pm-research.com/content/15/2/99.abstract AB The MF Global bankruptcy was the fifth largest financial failure in U.S. history and sent shock waves across the U.S. and European financial markets; the farming and commodities industries; and the regulatory regimes in Washington, Chicago, and New York. However, while approximately 2,800 direct finance jobs were lost and more than a billion dollars remains unaccounted for, the greater tragedy will be in the lasting effects this failure may have on the very functioning of futures markets. This article documents some of the relevant financial history of the failure and outlines the various market failure theories it invokes.These include the principal-agent problem, the issue of co-opted regulation, the market for lemons, and the divergence between downside commodity insurance and options pricing.TOPIC: Financial crises and financial market history