Refco FX account withdrawl frozen!!!

Discussion in 'Forex Brokers' started by inet, Oct 17, 2005.

  1. straight from refco llc... just had the curiosity to look this up, interesting what they write about refco's liabilities, segregated accts etc (read the right-hand side column from the top):
    http://www.refco.com/PDF/new_accounts/individual_joint_acct/cust_agreement.pdf

    obviously hindsight is a wonderful thing, but even w/o the benefit of hindsight, given a choice, not the kind of clause (#4 in particular) i wld want to sign up to....

    now perhaps this clause is the norm in the FCM world? (dunno, i don't trade futures...)... just asking?
     
    #61     Oct 19, 2005
  2. Chood

    Chood

    Nick, how did I get on your bad side today? Sugar crash from all those candy bars maybe? Stick to your diet, you'll be less cranky.
     
    #62     Oct 19, 2005
  3. thought this cld be useful, straight from edgar... worth reading additional stuff about the sale (MoU-stage) to jcflowers on http://sec.freeedgar.com/displayText.asp?ID=3962406 :

    Also on October 17, 2005, the Company and certain of its subsidiaries
    (collectively, the "Debtors") filed voluntary petitions for reorganization
    under Chapter 11 of the United States Bankruptcy Code (the "Code") in the
    United States Bankruptcy Court for the Southern District of New York (the
    "Bankruptcy Court"). The Debtors will continue to operate their business as
    "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in
    accordance with the applicable provisions of the Code and orders of the Court.

    In addition to the Company, the Debtors include Bersec International LLC,
    Kroeck & Associates, LLC, Marshall Metals, LLC, New Refco Group Ltd., LLC,
    Refco Administration, LLC, Refco Capital LLC, Refco Capital Holdings, LLC,
    Refco Capital Management, LLC, Refco Capital Markets, Ltd., Refco Capital
    Trading LLC, Refco Finance Inc., Refco Financial, LLC, Refco Fixed Assets
    Management, LLC, Refco F/X Associates, LLC, Refco Global Capital Management
    LLC, Refco Global Finance Limited, Refco Global Futures, LLC, Refco Global
    Holdings, LLC, Refco Group Ltd., LLC, Refco Information Services, LLC, Refco
    Mortgage Securities, LLC, Refco Regulated Companies, LLC and Summit
    Management, LLC.

    None of Refco's regulated subsidiaries, including the futures brokerage
    business conducted through Refco LLC and certain of its affiliates, and the
    registered broker dealer Refco Securities LLC, have filed for bankruptcy
    protection.


    anybody knows where to obtain a list of unsecured creditors??
     
    #63     Oct 19, 2005
  4. Chood

    Chood

    "Refco F/X Associates," listed as one of the Debtors, according to post above. Is that the fx dealer, RefcoFX? Anyone.
     
    #64     Oct 19, 2005
  5. inet

    inet

    Yes.
     
    #65     Oct 19, 2005
  6. other interesting url to monitor, since thats where refco's filed for chap 11 (UNITED STATES BANKRUPTCY COURT Southern District of New York ) but nothing available on the filing itself yet... wait'n'see:@http://www.nysb.uscourts.gov/
     
    #66     Oct 19, 2005
  7. Chood

    Chood

    [from another poster this thread:] ". . . when a firm files ch 11, you're an UNSECURED general creditor. So, get in line with the guys they buy pencils and coffee cups from."
     
    #67     Oct 19, 2005
  8. Chood

    Chood

    "However, forex customers should not have to worry about the stability and financial integrity of their forex dealer. That is where the benefit of dealing with RefcoFX comes in.

    Stability and Financial Integrity. . . .

    No Counterparty Risk. Size matters. The broker you align yourself with is the counterparty to EVERY transaction. RefcoFX is the single biggest counterparty in the retail FX world and a safer counterparty with which to conduct trading."


    Above bold blurb courtesy of RefcoFX, its website heading "Complete Safety of Funds." I am reassured.
     
    #68     Oct 19, 2005
  9. misha7

    misha7

    Chood this document refers to OTC FOREX transactions which is what FXCM, GAIN, MG etc are offering. It's a fact, please call NFA, CFTC or whoever and dont't waste your time and mine.

    By the way I agree with you that unethical firms like Refco should not get away with it, and they won't (I hope). However you will notice that I've been saying for months on this board that Refco FX is not registered properly and I am sure this is one of the reasons this is happening to them.
    Now, I believe (and again I hope you do too) this industry can get better, cleaner, more realiable and NFA/CFTC registration and a clean record is the minimum every decent firm should start with.
     
    #69     Oct 19, 2005
  10. saw this quote tonight on business week online

    from mr Flowers ... who is bidding for the futures unit ...

    -Its [foreign-exchange] and securities businesses have been damaged by the bankruptcy.-
     
    #70     Oct 20, 2005