MF Global believes that it has “turned a corner” and anticipates a healthy increase in trading volumes for the fourth quarter of 2008 despite an expected pre-tax loss of between $55m – $65m.
The brokerage said that adjusted pre-tax returns for the period will take a downturn due to its recent bad debt provision which was caused due to a $141.5m hit on wheat futures on February 28.
But overall volumes are set to rise. MF Global’s total volumes are expected to range between 590m and 600m, an increase of approximately 37% - 39% year-on-year. Meanwhile, net revenue is also expected to be up to around $440m to $460m, up 17 to 20% compared to the equivalent period in 2007.
The company also addressed its risk control systems, following its $141.5m hit. It has employed two independent consultants to...