I contacted refco thru their messaging program they have on their trading platform. They told me that the problems that Refco is experiencing effect only Refco Capital Markets and not Refco FX. They way they explained it, Refco FX is an LLC that is owned and operated through somekind of partnership with Refco Capital Markets. They also said that all normal functions of the trading platform will be available ( including withdrawls). So that sounds not so bad. The prudent might want to think about making a withdrawl now, though.
Interesting. This was in the news. I've never seen Refco's platform so I don't know firsthand. You haven't noticed any difference in their platform? Is this statement just media hype? NEW YORK, Oct 13 (Reuters) - Refco Inc., struggling to survive .... Traders said that the Refco foreign exchange trading platform had been devoid of prices since around midday Thursday, when it announced trading at its capital markets unit had been halted......
Well, I am on the platform right now and it seems to be working fine. I made a few points shorting the Euro/USD.
Of course, because u see when Refco was OK FXCM and ACM were "backed by the largest blah-blah" "the full strenth", "strategic partnership" (FXCM web site), "better than any account protection" (ACM web site). And now, "who is Refco" oh that minority shareholder? oh we are completely separate ,"nothing to do with them", they just bought some shares, thats all well, guess what, people are not stupid.
How about RefcoFX customers with EUR, GBP or AUD accounts ? www.google.com/search?q=cache:Sr2eo...-clients/deposit-funds/bank-wire-non-usd.html
Words have no meaning at times like these, FDIC is the only word that brings confidence to my mind, not some operator saying everythings going to be OK just wait and see.
I am one of those traders. We use Currenex platform with Refco piping feeds. By 11:45, my normal 1-pip spread across the board start thinning out in minutes. 2, the n3 then 4 in the EUR and the GBP. Counterparties start disconnecting the feeds. By 12:30. Currenex went blank. Very scary day as I watched Refco die before my eyes.
a friend of mine in Chicago who works for a trading firm said that they called Refco and Refco had no idea that their feeds were being pulled. Then they realized it. ROFL. Oh well. Live by the sword, die by the sword. -c