Will Refco set a new trend?

Discussion in 'Prop Firms' started by Mr Kamikaze, Oct 17, 2005.

  1. It just occurred to me that maybe the SEC, CFTC, FSA etc will start looking into other prop shops as a consequence of all this Refco madness. It could even force a crack down on the industry by the regulators. It could even transpire that others have been doing the same thing, I mean it would be logical to presume that if Refco had certain problems so would their competition. Just think back to how Enron was exposed and then came all the other nasty shocks in the markets. If one firm is guilty there are quite likely to be others in the same boat who are trying to keep a low profile and not draw too much attention.

    It will be interesting to see if other prop shops and brokerage houses start to be investigated in an effort to clean up the industry. After all this is not the first firm rumoured to be going bankrupt of late, not that I would dare to name names, but I would like to see an industry wide investigation into all the major prop. shops and brokers to see who is playing fair and who is playing dirty.

    The below set of smiles remind me of a few Refco friends faces as the news broke, its the before, during, present and most likely soon to be.

    :D :confused: :eek: :mad:
  2. lol. ANOTHER REFCO POST. boy this is getting exciting!!
  3. Brandonf

    Brandonf ET Sponsor

    Why do we need 500 refco threads?
  4. Its fun!! (and stupid too!!)
  5. mmmhhh... since this is just a discussion forum, care to venture a few names of firms that are, perhaps wrongly, thought to be a bit 'fragile' at this point? if only to encourage them to communicate more about their 'hidden' strengths, why clients should feel safe with them etc? too many of those firms have very opaque corporate structures / relationships / loads of clever marketing as to how in truth and for which specific activities they are regulated, how and to what extent clients' monies are protected etc etc... probably a good time for clarity...
  6. I heard that Jeff Mester...former CEO of ETG is at REfco securities. I think there are some people that are just bad luck.
  7. It's interesting how little news there is about REFCO, when to me it's a bigger scam that Enron.

    :confused: :confused: :mad: :mad: :eek: :eek:
  8. as far as fx, here's what i got from the head of legal & compliance at a reputable UK-FSA registered broker:

    [me: re. investor protection schemes, since I can't find anything
    sufficiently specific in all of the FSCS nor in your documentation, please kindly confirm to what extent my clients' monies would be protected in the context of this FX PB agreement, i.e. what is the actual level of protection available for deposits effected for the specific purpose of investing into leveraged spot forex contracts?

    him: There is no protection for FX clients, unfortunately (unless clients have segregated funds).]

    ... traders beware...