MF Global Holdings, a major player in th futures market, has filed for bankruptcy after failing to find a buyer.

The petition, filed with the U.S. Bankruptcy Court fo the Southern District of New York, came days after talks to sell some of its assets to Interactive Brokers fell apart according to a report published by Reuters on Monday.

The bankruptcy filing, which also involves MF Global Finance USA, a subsidiary of MF Global Holdings, is a major blow for chief executive Jon Corzine who had tried to transform the firm from an agency brokerage into an investment bank. Corzine, the former chief executive of Goldman Sachs, becamse chief executive of MF Global in March 2010 after a term as governor of New Jersey.

The bankruptcy makes MF Global the largest casualty of the European debt crisis; the firm had made risky bets on the sovereign debt of Italy, Portugal, Spain and Greece which didn't pan out and recently announced a second quarter loss of $192 million.

The New York Federal Reserve says it has suspended new business with the futures trading company until it can perform its duties as a primary broker. The InterContinental Exchange says it will limit MF Global customers to unwinding positions no longer recognize the company or its divisions as a guarantor of futures trades.

-- This article first appeared on Securities Technology Monitor.