UPDATE 2-MF Global seeks to calm investors as stock plunges

(Recasts with statement from MF Global, additional comments)

By Lisa Shumaker

CHICAGO, March 17 (Reuters) - MF Global (MF.N: Quote, Profile, Research), the world's largest broker of exchange-listed futures and options, sought to reassure investors that it had enough funds for normal business even with its stock falling as much as 78 percent on Monday.

A fire sale of Bear Stearns Cos Inc BSC.N stunned Wall Street and pummeled global financial stocks on Monday on worries that few financial institutions are safe from deepening market turmoil.

MF Global said it has sufficient funding to conduct normal business and $1.4 billion in committed, undrawn credit facilities, according to a news release. The company has no exposure to subprime mortgage-backed securities or Bear Stearn's investor Joe Lewis, it said.

"It's a bad day for MF Global," said one MF Global broker, who did not wish to be identified and referred journalists' calls to the press office.

But another source indicated no panic on the company's trading desks.

"None of the trading desks are being asked to liquidate positions to cash out," said one a trading source at MF Global.

Shares of MF Global were trading at $7.35, down $9.95 or 58 percent, in afternoon trading on the New York Stock Exchange. MF Global was the second-biggest decliner on a percentage basis, behind Bear Stearns, which has fallen as much as 88 percent.