NEW YORK (Bloomberg) - Bermuda-based MF Global Ltd., the derivatives broker that lost 90 percent of its market value this year, said chief executive officer Kevin Davis resigned and was replaced by Bernard Dan.

Mr. Dan, 47, joined MF Global in June and will seek to capitalise on increased trading to boost profits, the company said yesterday in a statement. Profit excluding some costs will be as much as 15 cents a share in the second quarter, the company said, missing the 21-cent average estimate of analysts surveyed by Bloomberg.

MF Global was hurt by a $4 million expense related to the bankruptcy of Lehman Brothers Holdings Inc., as well as severance payments that totaled $11 million before taxes. Mr. Davis, a 17-year veteran of the firm, raised capital and bolstered risk controls to address concerns a trading loss might spark customer defections.

"We are disappointed by the preliminary earnings results, but see Bernie Dan's appointment as the much-needed confidence booster for the stock," JPMorgan Chase & Co. analyst Ken Worthington said in a note to clients yesterday.

MF Global rose 84 cents, or 37 percent, to $3.09 as of 9.46am in New York Stock Exchange composite trading. The stock lost 90 percent this year.