FXLQ Shut down temporarily by NFA | Page 6 | Forex Factory

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FXLQ Shut down temporarily by NFA

  • #101
  • Dec 18, 2007 9:46am Dec 18, 2007 9:46am
they might loos there membership with n.f.a., if that happen and they continue to do bussines, look out
If I Go Broke Trying Then I Will die happy.
  • #102
  • Edited 12:19pm Dec 18, 2007 10:47am | Edited 12:19pm
At this point, we're just hoping to get our money back... after that, they can go bankcrupt for all I care.

Looking at currenex now, on PFGFOREX.com. They are FAST, and spread super tight during liquid markets. Trying to get use to the currenex platform.

Looking at 1world, they are going straight to federal court. Hope this guy goes straight to jail for having missing client funds ($4mill).
http://www.cftc.gov/newsroom/enforce...pr5424-07.html

Robert gray better cough up cash or he'll go to jail too.


Quoting KasperFX
Are you serious!! Or maybe you’re somehow connected to FXLQ? If you’re so called “large lot” professional community traders feel a firm that steels, misleads everone, moves clits funds offshore, forges company instruments’ and assets to make themselves look bigger is a comfort to do business, I guess you deserve them then. What a joke these FXLQ guys are one big joke, and deserve to be closed down. .
  • #103
  • Dec 18, 2007 2:22pm Dec 18, 2007 2:22pm
They have not answered their phone the last 3 times I called to check on the release of my funds. Any else tried to get a hold of them lately?
  • #104
  • Dec 18, 2007 2:58pm Dec 18, 2007 2:58pm
Quoting lcfxtrader
They have not answered their phone the last 3 times I called to check on the release of my funds. Any else tried to get a hold of them lately?
Tuesday, December 18, 2007

To our Valued Clients:

We have temporarily suspended operations due to a Commodity Futures Trading Commission lawsuit filed against the company in Federal Court. Please be assured that as soon as we are able, we will return any messages.

There is a hearing in the U.S. District Court scheduled for January 4, 2008 where we hope to resolve all issues the CFTC has with our company.

Thank you,

Forex Liquidity LLC

Well this is the answer, i suppose.
  • #105
  • Dec 18, 2007 3:02pm Dec 18, 2007 3:02pm
if there going to federal court, there could be charges filed against robert gray. say good bye to fxlq
If I Go Broke Trying Then I Will die happy.
  • #106
  • Edited 3:39pm Dec 18, 2007 3:28pm | Edited 3:39pm
Oh man, all hopes are gone now... only liquidation sale of the existing accounts... If there liability gap is small, someone will buy the client base, if it's too big, we'll be lucky to get 50cents on dollar. I wish they fine his ass, send him to jail, and bar him and his croonies from ever playing in the financial industry - ever again.

Trying to contact nfa... this only means they don't have enough money to cover all of the liability. I hope they dismantle them into pieces and sold for spare parts.

Justice will be swift and hopefuly merciless.

Quoting Moe
if there going to federal court, there could be charges filed against robert gray. say good bye to fxlq
  • #107
  • Dec 18, 2007 3:55pm Dec 18, 2007 3:55pm
waving goodbye to my $$ .

i hope that we can recover some $$.

but the lawyers are circling overhead. they smell blood and they will tear the carcass apart. they will go on a feeding frenzy. the clients can only watch and wait to get the left over of what actually belongs to them.
  • #108
  • Dec 18, 2007 3:58pm Dec 18, 2007 3:58pm
Ugh, very very nasty.
  • #109
  • Dec 18, 2007 4:22pm Dec 18, 2007 4:22pm
My hopes are dwindling.

Account was open for 2 weeks... not one trade was ever made!

Writing off $5K is not what I wanted for Christmas.

Someone call the Christmas Angel to come and fix this for me all those others that are impacted.

Wayne
  • #110
  • Dec 18, 2007 4:43pm Dec 18, 2007 4:43pm
But most importantly, say good bye to your money..
you wont see it in long while.
  • #111
  • Dec 18, 2007 6:41pm Dec 18, 2007 6:41pm
Quoting BurgerKing
But most importantly, say good bye to your money..
you wont see it in long while.
Burger King, what are you basing your statement on? Do you have inside knowledge of the FXLQ lawsuit or is it that every lawsuit with the CFTC and a Forex firm takes forever to resolve? Yes, I know Refco is just getting resolved after all this time but are they all like that? Please clarify. Thanks.
  • #112
  • Dec 18, 2007 7:21pm Dec 18, 2007 7:21pm
I think resolution should be quick after the hearing. The last liquidation took place 4 weeks after MRA (CFG ? in 2006). They were lucky enough to find a buyer who didn't reduce client funds. Will we be that lucky - dang it, i'll be happy to see 75cents to dollar.... it's like one massive stop loss on the account.


Quoting TripTrap
Burger King, what are you basing your statement on? Do you have inside knowledge of the FXLQ lawsuit or is it that every lawsuit with the CFTC and a Forex firm takes forever to resolve? Yes, I know Refco is just getting resolved after all this time but are they all like that? Please clarify. Thanks.
  • #113
  • Dec 18, 2007 10:30pm Dec 18, 2007 10:30pm
it would be nice if interbankfx steps in and buys there client list.
If I Go Broke Trying Then I Will die happy.
  • #114
  • Dec 19, 2007 9:07am Dec 19, 2007 9:07am
That’s wouldn’t make me feel any safer, in fact from my knowledge IBFX is tied to Robert gray/FXLQ contractually to be IBFX's clearing channel , and now since this contract was written prier to Gray registered /starting FXLQ I bet this Contract has no barring what so ever on weather or not grays registered at all, no mater what, he will still be the liquidly channel provider for IBFX, this is not go IBFX, they needs to be public about this contract and prove that it no longer exist to regain credibility.
  • #115
  • Dec 19, 2007 9:13am Dec 19, 2007 9:13am
I don't really know anything about IB, but I would have to believe if FXLQ was there only source of liquidity, IB right now would be non-functioning; isn't trading at FXLQ suspended right now? How would IB be able to clear any trades off there books if their sole source of liquidity was unable to send orders into interbank...

Maybe someone in the know can clear that up...
Trade Small. Be Patient. Learn to Survive.
  • #116
  • Dec 19, 2007 9:20am Dec 19, 2007 9:20am
Quoting TripTrap
Burger King, what are you basing your statement on? Do you have inside knowledge of the FXLQ lawsuit or is it that every lawsuit with the CFTC and a Forex firm takes forever to resolve? Yes, I know Refco is just getting resolved after all this time but are they all like that? Please clarify. Thanks.
The first to get the money are the creditors and banks, last are the the clients even though those are client's money.

Inside knowledge? No. Call it experience. I am still waiting for money from two very proud NFA registered companies UGM and 1World.
  • #117
  • Dec 19, 2007 10:03am Dec 19, 2007 10:03am
BugerKing - man that sucks. 1world is a horrible experience.

I spoke to NFA again, they basically said, jurisdiction at cftc supersedes NFA now. She emphasized although some wires came in, there are still not enough to cover liability. There were no additional funds that came in this week!

So Robert Gray and his crew lied to some of us who went to the office yesterday, who said "oh everything is fine, we got additional funds this week... hoping to resolve things in a few days." He is either clueless about his financial statement, or plain lying even in the 11th hour.

Assuming a stated liability of $9 million in expenses
Assuming client funds still intact (If fxlq is telling the truth based on an estimate 500 redemption, let's say 25k average deposit = $12.5 million).
Assuming $5 million came in overseas

Short fall of $4 million, may be we lose 30% of account.... may be less if there are more deposits...

or we might lose more if liability is higher, or there are less deposits, or there are not enough funds coming in from overseas.

Anyway, you get the picture. January 4th, hopefully we get full disclosure.


Quoting BurgerKing
The first to get the money are the creditors and banks, last are the the clients even though those are client's money.

Inside knowledge? No. Call it experience. I am still waiting for money from two very proud NFA registered companies UGM and 1World.
  • #118
  • Dec 19, 2007 11:29am Dec 19, 2007 11:29am
Just spoke with my contact at FXLQ. The NFA is discounting certain funds FXLQ has on hand in determining their net cap rate. CFTC auditors will present their findings at the Jan 4 hearing. FXLQ tried to get an earlier date, but because of all the upcoming holidays that was the first available. They're anxious to resolve this and actually look forward to the hearing.
  • #119
  • Dec 19, 2007 11:30am Dec 19, 2007 11:30am
I know how everyones says its better to have the NFA than not, but i think this time they have a case to answer and i personally think they have been negligent.

When a forex broker suddenly increases its liquidity from 2 million to 40+ million as regulator i think that the NFA have a duty to check that out immediately and obtain absolute proof ... it is clear that the NFA have not done this and to make matters worse, they knew that there was a problem in August, yet still allowed FXLQ to take deposits.

If this doesnt work out, i am seriously considering taking legal action against NFA, i am sure there is an American Lawyer out there who would love to get their teeth into something like this.

I am sorry to say but in my opinion this whole forex regulation in the USA is a complete sham.

Personally speaking i only invested funds on the basis of the capitalisation report completed each month. If that cant be trusted then what do you do. Its about time the NFA took responsibility and the whole industry was cleaned up....

Take a leaf out of the Financial Service Authorities book, all client funds have to be kept in a seperate client account worded in such a way that in the event of bankcruptcy the money cant be touched by creditors and all financial services companies, insurance companies, investment companies have to pay into a central pot, so that in the event of a shortfall there is a central fund to make sure clients arent disadvantaged... It seems to me in the US the companies come first and the suckers second!!!!!
  • #120
  • Dec 19, 2007 11:48am Dec 19, 2007 11:48am
Quoting smotty
Take a leaf out of the Financial Service Authorities book, all client funds have to be kept in a seperate client account worded in such a way that in the event of bankcruptcy the money cant be touched by creditors and all financial services companies, insurance companies, investment companies have to pay into a central pot, so that in the event of a shortfall there is a central fund to make sure clients arent disadvantaged... It seems to me in the US the companies come first and the suckers second!!!!!

You have to read the fineprint there. Many brokers in England include a "Non-Segregation of Funds Notice" in their customer agreement. For example Alpari or CMC. It doesnt really sound that much better. It reads like this:

10. Non-Segregation of Funds Notice
Alpari (UK) Limited will hold your money as trustee in its bank accounts and
accordingly:
Money held by us on your behalf will not be subject to the protections
conferred by the FSA's Client Money Rules.
Your money will not be segregated from our money and will be used by us in
the course of our business, and in the event of our insolvency you will
rank as a general creditor.
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