FXCM Is Buying RefcoFX - Deal is Done - Funds are safe

Discussion in 'Forex Brokers' started by Trader/God, Nov 11, 2005.

  1. tomcole

    tomcole

    Its still beyond my understanding how folks continue trading at these shops.

    Arent there enough products out there to trade at "respectable" FCMs to trade?
     
    #171     Dec 12, 2005
  2. Chood

    Chood

    Jimrockford & Tomcole,

    FXCM also served as the broker of choice for the accused signals and advising swindler James de Wet, aka Team Forex.

    de Wet placed the futures accounts he managed at FXCM, according to the recent CFTC enforcement action against him.

    Wonder how much (if any) FXCM knew of his misconduct and how much it made from its relationship with him?
     
    #172     Dec 12, 2005
  3. and u 4get the 4xmadeeasy scam http://www.fxcmhome.com/home.php check this out :)))))))) fxcm the white nights says zonetrooper, no reason not to trust'em etc..... too funny :))))))))
     
    #173     Dec 12, 2005
  4. wooops sorry that was from uninvited guest....... anyway, same blinkers... guys, don't mean to be unnecessarily offensive here, but u shld have smelt the coffee by now...
     
    #174     Dec 12, 2005
  5. The power of the internet

    The January issue of Active Trader just hit the newstands in my area a few days ago and they had a big article on Refco.

    I would say close to 100% of the article has been discussed here on EliteTrader.com in depth at least 1 month ago or longer, nothing new in the article. Looks like these forums are the place for current info on Refco.
     
    #175     Dec 17, 2005
  6. Chood,


    A close relative of mine had money with that fu..... liar James
    de Wet


    http://www.cftc.gov/opa/enf05/opa5126-05.htm

    The first time I saw his website and had a good close look,
    I smelled immediately shit and advised him to move his
    money away, unfortunately he wanted his loss to be recovered

    This James claimed to be a statistician but had not even 1
    risk/reward number or drawdown number on his performance
    page.
     
    #176     Dec 21, 2005
  7. Xenia

    Xenia

    Auction of Refco currency brokerage stake delayed

    Wed Jan 18, 2006 05:47 PM ET

    NEW YORK, Jan 18 (Reuters) - A U.S. bankruptcy judge on Wednesday delayed
    the auction for Refco Inc.'s stake in a retail currency brokerage by three weeks
    to Feb. 16, a lawyer at the hearing said.
     
    #177     Jan 19, 2006
  8. Chood

    Chood

    I understand that RefcoFX allows its customers to continue trading during the bankruptcy and the freeze of client withdrawals. That raises a question: How can it continue to "broker" its retail customers' trades? I mean since it, like other retail "brokers," is supposed to be laying off its customer positions in the interbank market -- i.e., it is not holding the trades itself and thereby trading against the customer -- how has it managed to establish counterparty credit sufficient to participate in the interbank market? Surely, as a "broker" of its customers' trades, it must have multiple interbank counterparties ready and willing to deal with it. Any thoughts?
     
    #178     Jan 20, 2006
  9. Chood

    Chood

    I’m now informed that RefcoFX manages and cabins this problem with a credit facility into which the tape of all customer trades is funneled. The facility is four-sided, right-angled at each corner, sturdily made, and rests in the center of the RefcoFX dealing floor. On it is a label “Risk.” From it, risk is cleared each night, clean and reliable. I also understand that despite the Refco financial problems, this credit facility has not changed at all from since before the bankruptcy. Is FXCM looking to buy it as well?
     
    #179     Jan 20, 2006
  10. NEW YORK, Jan. 20 /PRNewswire-FirstCall/ -- Refco Inc. (OTC: RFXCQ) said
    today that Judge Robert D. Drain of the U.S. Bankruptcy Court of the Southern
    District of New York approved on Wednesday, January 18 an order delaying the
    auction and related deadlines for the proposed sale of assets of Refco's
    online foreign-exchange trading unit, namely:

    * More than 17,000 retail client accounts of Refco FX Associates LLC
    (http://www.RefcoFX.com); and

    * The 35% share of Forex Capital Markets LLC (FXCM) currently owned by
    Refco. FXCM, a Futures Commission Merchant registered with the CFTC
    and a member of the National Futures Association, provides a foreign
    currency trading platform and execution services to retail investors.

    The adjournment was sought to provide potential bidders with more time for
    due diligence and to schedule management meetings on the sale and came after
    agreement with the current "stalking horse" bidder FXCM and Refco's Official
    Committee of Unsecured Creditors and the Agent for its bank lending group.

    Judge Drain's order establishes, among other things, the following new
    deadlines and dates:

    * Latest date for interested parties to qualify as potential bidders and
    access the virtual data room: February 10, at noon;

    * Deadline for the submission of a qualified bid package: February 13,
    at 10:00 a.m.;

    * Potential bidders will be notified whether they are a "qualified
    bidder" under the Bidding Procedures Order by 10:00 a.m. on February
    15;

    * If there is more than one "qualified bidder," an auction would be held
    at the offices of Skadden, Arps, Slate, Meagher & Flom LLP on February
    16 at 10:00 a.m.; and

    * A hearing to approve the sale to the winning bidder will be held at the
    U.S. Bankruptcy Court in lower Manhattan on February 17, at 10:00
    a.m.

    The bidding procedures for the sale of Refco's retail foreign exchange
    assets are similar to those employed in the sale of the assets of Refco LLC,
    the company's regulated commodity futures business, which was completed on
    November 25.
    "We are pleased that we were able to reach an agreement and obtain the
    Court's approval of the revised bidding timeline and look forward to holding a
    robust auction for these assets," said Harrison J. Goldin, Refco's chief
    executive officer.
    If approved by the U.S. Bankruptcy Court, the transaction will ultimately
    preserve all the account balances in the transferred retail client accounts.
    All those interested in taking part in the bidding process should contact
    Ashish Contractor at Greenhill & Co. at 212-389-1500.

    Cautionary Note Regarding Forward-Looking Statements
    This press release contains forward-looking statements within the meaning
    of the Private Securities Litigation Reform Act of the 1995. In this press
    release, all statements other than statements of historical fact are forward
    looking statements that involve risks and uncertainties and actual results
    could differ. These forward-looking statements are based on assumptions that
    we have made in light of our experience and on our perceptions of historical
    events, current conditions, expected future developments and other factors we
    believe are appropriate under the circumstances. Although we believe that
    these forward-looking statements have a reasonable basis, you should be aware
    that numerous factors, including the outcome of the Audit Committee's
    investigation; our ability to obtain financing arrangement or alternatives;
    changes in domestic and international market conditions; competition; our
    ability to attract and retain customers; our relationships with introducing
    brokers; retention of our management team; our ability to manage our growth or
    integrate future acquisitions, our exposure to significant credit risks with
    respect to our customers, international operations and exchange membership
    requirements, the effectiveness of compliance and risk management methods,
    potential litigation or investigations, employee or introducing broker
    misconduct or errors, reputational harm, and changes in capital requirements,
    could cause actual results to differ materially from our expectations.
    Because of these factors, we caution that you should no place undue reliance
    on any of our forward-looking statements. Further, any forward looking
    statement speaks only as of today. It is impossible for us to predict how new
    events or developments may affect us. The Company disclaims any intention or
    obligation to update or revise any forward-looking statements, either to
    reflect new information or developments or for any other reason.



    SOURCE Refco Inc.
    Web Site: http://www.RefcoFX.com
     
    #180     Jan 21, 2006