Rumor - is Mac/Refco in trouble?

Discussion in 'Prop Firms' started by asdftrader, May 26, 2005.

  1. I heard from some reliable sources that Refco in Chicago that Refco is in trouble. I heard there was an exodus of traders mainly because they were losing TT as tehir main platform.
    I also heard that there largest Eurodollar trader, who apparently was a well respected guy by them, left and they have even gone as far as to serve him with a lawsuit.
    What the heck is going on with them, I thought they were the biggest and best in the business? Also why would they serve their traders with lawsuits when they leave??????????
    Theyre a solid firm no? Can anybody debunk these rumors?
  2. my guess is that all the traders in the world could leave the Refco arcade and Refco wouldn't even notice.
  3. are they affiliated with macglobal in NYC?
  4. Yep, they are in trouble, big time...yes, i know...for certain...and their problems started way before the TT issue...
  5. Wasn't Refco bought by TH LEE recently. I find it hard to believe that they are going to let the thing implode...
  6. Can you tell me more? I was thinkiing of going to there to trade Eurodollars.....I heard they have the best tech support and systems. Why did that guy leave? And why aren't they staying with TT?
  7. My son was offered a place on their graduate trader program this very morning for their London office. Think there's anything to worry about? My initial response was to say well done and snap up the offer but if this firms 'going down the pan' then its definately not the place I want him starting out.

    Any advice much appreciated.
  8. PallMall


    i don't think Refco is going to let RTS fail simply because 1) they've invested too much thus far to just let the North American ops cease to exist while London and Gibraltar continue to remain profitable, 2) Refco's thinking in acquiring RTS was to grab futures volume as a revenue source - that's not going away, and 3) Thomas Lee wants to float a Refco IPO and part of being a player among FCMs is to have a prop desk - (even though the revenues from this are nothing compared to clearing, etc.)

    it's just growing pains: hiring the wrong people from the get-go (Kudos TG! "Yeah yeah!" you tool!) and not implementing the same biz plan/training program in the States as they have in London. RTS will make it through in the end, but it just took too long for them to realize that a training program consisting of handing you a Market Profile book and sitting you down on a simulator for a couple weeks then setting you loose on their P/L isn't the way to consistency, or revenue. Mother Refco has the right to be pissed!

    as for taking a gig with the London office, your son will be just fine because there actually are consistent, profitable, experienced traders he can learn from, unlike in Chicago.

    Cheers Refco Pro!

  9. PallMall


    my bet is that once the air clears in court with TT and Refco, Refco will find away to keep TT for those that are vehemently opposed - and have clout. Until July...
  10. i think london is still a reasonable place to be, but if he were going to chicago or any USA branch, id tell you to try to deter him from this option at any cost...
    #10     May 26, 2005