Is it true that, after the sale of Refco LLC's assets, former customers who traded futures (specifically on US exchanges) got all their securities and/or cash back in full, and that the CFTC regulatory and investor protection framework (especially segregated account requirements) worked as intended? Can anyone point to an official announcement confirming this?
so nobody lost a dime in there futures account with refco? so outside mass fraud segregated futures accounts should be safe
i was with refco before, and i am now with refco-man division. the transition has so far been seamless (but the BIG computer switchover is happening over the next two weeks). throughout i have been able to withdraw funds. fingers crossed. i was seriously thinking of switching, but by the time i decided that velocity was the best alternative, the dust seemed to have settled so i stayed there cos no one was really offering a better deal anyway. im either lazy or too slow. may be both..
No, it is not true. Jim Rogers and other futures customers of Refco, LLC, claim they lost about a billion dollars, because they claim Refco unlawfully, and without authorization, transferred their customer property from segregated, regulated accounts, to unsegregated, unregulated accounts, just before Refco declared bankruptcy.
Thanks for pointing this out, jimrockford. I just found the following article: http://www.futuresindustry.org/fimagazi-1929.asp?a=1093 It seems that the passage (under "Protective Shell") below relates to the circumstance you mentioned: "On the other hand, funds that were not inside this shell were not protected. The FIA panel noted that several investment funds had filed lawsuits against Refco seeking restitution of customer funds that had been allocated for the trading of futures. These funds allegedly were transferred to affiliates of Refco LLC without customer permission. Lawyers for Refco have argued that the customers had agreed to these transfers in order to earn higher returns on excess margin. As this issue went to press, the courts had not yet ruled on these disputes."
they let u trade cuz they know most of u are loseres'n'in case of settlement their expenses wud be reduced innit[?]
Did you receive the email from Sitrick & Company? Below is part of it: -------------------------------- "In the next week, you should receive a package in the mail that will contain additional information regarding the Bar Date (the "Bar Date Notice") and a proof of claim form stating your account value as of October 17, 2005 (the "F/X Proof of Claim Form"). The Debtors are not making an admission that you have a claim against Refco by sending you the F/X Proof of Claim Form. If you agree with the amount listed on the F/X Proof of Claim From, which is intended to set forth your claim as of October 17, 2005." -------------------------------- Looks like any gains or losses after October 17, 2005 don't count.