Refco Securities LLC frozen for 20 days, to be shut down

Discussion in 'Wall St. News' started by buzzy2, Oct 14, 2005.

    Friday: TO BE SHUT DOWN

    Thursday: YOUR MONEY IS SAFE

    NEW YORK (AP) - Embattled commodities and financial-markets broker Refco Inc. is winding down the business of its regulated broker-dealer unit Refco Securities LLC, according to the company that clears the unit's trades.

    The disclosure shows the trouble at Refco, the country's largest independent futures broker, has spread beyond the unregulated unit the company shut Thursday due to a cash crunch.

    Refco Securities LLC, an indirect subsidiary of Refco Inc., informed Depository Trust Co. "that it will begin the process of winding down its business," DTC said in a notice on its Web site. "Refco, which is in full compliance with all of the DTC Participant requirements, remains in business for the purpose of winding down its outstanding positions. Refco has represented to DTC that, as of today, it will not be engaging in any new business except to the extent necessary to offset and effectively liquidate outstanding long and short proprietary and customer positions."

    DTC clears transactions and retains custody of some 2 million securities issues, giving it a role in a broad swath of market activity.

    Refco spokeswoman Marcia Horowitz wasn't immediately able to comment on DTC's notice or the status of business at Refco Securities LLC. Dennis Klejna, in Refco's investor relations department, wasn't immediately available.

    WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission said on Friday that it has placed restrictions on two Refco Inc. (NYSE:RFX - news) units' ability to make withdrawals of equity capital, unsecured loans or advances.

    The SEC said Refco Securities LLC and Refco Clearing LLC are limited for 20 business days from making transactions if the total, aggregated with other similar transactions, exceeds 30 percent of the firm's "excess net capital" during a 30-calendar-day period
  2. inet


    How about Refco FX?
  3. You have no idea what you are talking about.

    The above quote from Thursday has to do with REFCO LLC., and the futures side of the business that deals with segregated accounts.

    The quote that you display from today, Friday has to do with the securities trading department that is part of Refco Capital Markets Group and Refco Holdings Inc.

    Refco Capital Markets deals in prime brokerage transactions, foreign-exchange and fixed-income over the counter transactions, as well as security and security lending transactions.
    This is the unit that is "winding-down".

    RCM has NOTHING to do with the segregated futures accounts in Refco LLC.
    Thanks for showing that you have an axe to grind, or are totally misinformed.

    ET is alive and well.
    How pathetic.
  5. Again, REFCO CAPITAL MARKETS is the unit that is being affected by the winding-down of securities operations, not the division of REFCO that deals with futures trading.

    Nice cut and past job, bro.
    Too bad your brain is not as sharp as the axe that you have been grinding.
    Back to trading.
  6. Cheese


    This Refco outfit .. one has to be careful as to what one can say :eek: .. but it was never 100% kosher, never top draw .. and even the name Refco, Rough-co, Refuge-co .. never had a reassuring appeal.
  7. It's very unfortunate that you are saying that shit. Refco has carried a lot of traders through problems before. And believe it or not the guys who started it, who haven't been involved for quite some time, started out with nothing. They gave a lot of people a start in the industry along the way.
  8. Yes, it's the crooks at the top who sank this venerable firm. But there are (were) lots of good honest, hard working people at the bottom. I myself was about to open an account at Refco to trade grains last year.
  9. hehe
    Love it how people are trying to differentiate between refco LLC , refco Corp, Refco securities, refco capital, refco subsditities, refco propietorship, refco incorporated , refco Fx

    hell if I had any money in a company with the letter "R" in it, I'll be picking my ass out of there as soon as possible.
  10. Sure but that isnt the same as casting aspersions on everybody involved.
    #10     Oct 14, 2005