The UK division of MF Global has gone into administration, meaning some 700 staff face losing their jobs.
MF Global, a broker of commodities and derivative futures products, has filed for Chapter 11 protection following its exposure to indebted countries in the Eurozone. This will mean that the UK division of the business will be wound down.
It is understood that all 725 staff at London's Canary Wharf will eventually be made redundant although Administrator Richard Fleming of KPMG said it would not be not be viable to operate MF Global UK on a standalone basis.
He added: "Against the backdrop of challenging market conditions and the eurozone crisis, the financial position of MF Global UK has significantly deteriorated in recent weeks."
The company emerged out of hedge-fund operator Man Group in 2007.
MF Global collapse has been felt across the whole financial system and some commodity exchanges around the world have been effected. Most notably the Australian Commodities Market has been shut down by ASX meaning their is no trading market in wool or grain down under until further notice....! MF Global had an 80% share of this market.
All this news about large financial collapses adds to the unease being presently felt. No doubt other institutions will start to have cashflow problems too.