Refco Update "fyi"

Discussion in 'Forex' started by Comandatore, Nov 11, 2005.

  1. You might have received it also...if you are client ..if not
    well here is the last update:)
    ZC


    Dear RefcoFX Client:

    We wanted you to know about an important step in Refco's Chapter 11
    filing. Refco F/X Associates LLC (RefcoFX) has signed a Memorandum of
    Understanding (MOU) to sell certain of our retail FX assets to Forex
    Capital Markets LLC ("FXCM"). FXCM is a Futures Commission Merchant
    registered with the CFTC and a member of the National Futures
    Association.

    The MOU provides for the transfer of more than 15,000 retail client
    accounts of RefcoFX.com, including yours, to an affiliate of FXCM.

    Under the terms of the MOU:

    · Pending completion of a transaction, RefcoFX clients may continue
    trading in their accounts without disruption, and

    · Upon completion of a transaction, all retail customer positions and
    orders traded on the FX Trading Station platform will be transferred
    intact, and RefcoFX account holders will be made whole, have access to
    100% of their funds, and be able to carry out normal account procedures,
    including withdrawing funds, as usual.

    We believe this is the first step in ultimately normalizing trading.
    The MOU must be approved by the Bankruptcy Court, and the sale of the
    business will occur through a court-supervised auction open to competing
    bids. Thus we expect the process to take approximately 30 days to
    complete.

    We appreciate your continued support during this process. Refco has set
    up a toll-free information line (866-327-0774) to answer additional
    questions you may have. You may also visit the RefcoFX website,
    www.refcoFX.com, where you can find additional information about the
    Chapter 11 restructuring.

    We will continue to update you as more information becomes available.

    Sincerely,

    Refco F/X Associates LLC