Indiana Grain Company, LLC

Posted: 10/31/11

By: tomgrisafi

It was a monumental day on Wall Street.

MF Global Holdings filed for Chapter 11 bankruptcy protection in New York on Monday morning.

It was a move that came after the iconic firm tried unsuccessfully to sell itself to Interactive Brokers Group.

MF Global had a tentative deal to sell assets to Interactive Brokers as of late Sunday, reported CNBC, but the agreement "fell apart as talks continued overnight."

MF Global had been considering filing just its holding company for bankruptcy protection and then executing the sale. That plan is reportedly now off the table.

The Chicago Mercantile Exchange said on Monday that customers of broker-dealer MF Global were limited to liquidating their positions. The exchange, which owns the Chicago Board of Trade, said it would no longer recognize MF Global, which has filed for Chapter 11 bankruptcy protection, as a guarantor for floor trading.

When asked about the timing of the CME announcement, which came after the start of trading on the New York Mercantile Exchange, a spokesman told CNBC he would not comment.

Traders said they had received notice at 9:05 a.m. ET.

Source: CNBC