Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

FXCM vs Refco 7 replies

All withdrawals from Refco FX "frozen" 19 replies

Refco FX 5 replies

REFCO News Plugin 2 replies

Refco/FXCM Down 9 replies

Refco debacle

  • Post #1
  • Quote
  • First Post: Oct 12, 2005 8:52pm Oct 12, 2005 8:52pm
I am surprised that nobody here is discussing the crisis unfolding at Refco over the last few days...it seems that a few people here have account with Refco FX/FXCM/ACM. Has anyone heard if liquidity is affected? Has anyone pulled their money out?
i was wondering the same thing (why noone posted about it)..
Relax and be happy.
Btw I've been reading this (excellent) forum for a while (but only registered today), and usually get info on brokers from here. Now I dont have an account with Refco but have a few friends who do... if the firm does go down my understanding is that even retail customers should get most of their money back but that would be a long process... and to what extent will the subsidiaries eg FXCM be affected?
  • Post #4
  • Quote
  • Edited at 9:16pm Oct 12, 2005 9:09pm | Edited at 9:16pm
I have 2 accounts with FXCM (one personal and one corporate). But, both accounts have no funds in them. I withdrew all funds several weeks ago. Now I do my trading via InterbankFX. I doubt it will immediately affect their liquidity. REFCO is a very big company. But, if lawsuits start to pile up and there is a sudden rush of clients to withdraw their funds, then it could get interesting or ugly. Time will tell. The other retail forex brokers must be watching closely and licking their chops ithe hope of snagging any REFCO.FXCM fleeing clients.


JohnFX
I read about it in the the WSJ the other day. I'm wondering if other FX brokers may have similar problems and if the blocks are going to start to tumble as happened with the corruption of Enron/Tyco, etc. Are FX brokers insured to cover customer losses?
I am currently on FXCM and I have had no problems. But I am wondering wtf is going on with that. I cann't trade 100$ lots so I'll stay here untill then. This thing with them will drag out long time and they'll through money in someones pocket and it will go away.

Dave
Quoting mmills4x
I read about it in the the WSJ the other day. I'm wondering if other FX brokers may have similar problems and if the blocks are going to start to tumble as happened with the corruption of Enron/Tyco, etc. Are FX brokers insured to cover customer losses?
Most brokers have a Bond to cover client funds from insider theft. The reason REFCO's problem is a major one is because the are a publicly traded company and the people who own or bought their stock were mislead about the condition of their balance sheet, hence their stock price was inflated. So, the big loosers in this situation are the poor people who bought REFCO's stock when they went public last Aug. Their stock price has since dropped I believe over 50%. That's where the lawsuits will come from, the screwed stockholders.

JohnFX
Quoting xxDavidxSxx
I am currently on FXCM and I have had no problems. But I am wondering wtf is going on with that. I cann't trade 100$ lots so I'll stay here untill then. This thing with them will drag out long time and they'll through money in someones pocket and it will go away.

Dave
No, the SEC is all over this. They won't be able to make it go away by lining someone's pockets IMO.

JohnFX
What exactly is going on ? I have an account with FXCM and have not been very happy with them. Where can I find out more about this story?
Quoting morepips
What exactly is going on ? I have an account with FXCM and have not been very happy with them. Where can I find out more about this story?
Really no need to panic. Here is the link to the story.

http://biz.yahoo.com/ap/051012/refco.html?.v=11

I didn't like FXCM for daytrading. Too much manipulation ( I don't want to get into the manipulation discussion again) and I don't particulary like their platform.
But they are a big company and they will prob. survive.

JohnFX
Thanks for the info.
I have an account with FXCM and I'm transfering 80% of the funds to a new account that I've set up with Interactive Brokers today. I'll keep the remainder in for now, just to allow me to continue trading while the transfer goes through, but if things begin to look even worse, I'll go ahead and close the account.

When it comes down to it, we have enough to worry about alreadly without being concerned about the safety of our cash. There are plenty of other MMs/brokers out there.

steve
I was here, here I was. Was I here? Yes I was!
i think this whole thing is overblown. one little secret loan isnt going to bring the whole company down i just bought some butterflies on the stock, the volatility is crazy overblown right now.
Relax and be happy.
Just seen on Bloomberg the CEO got arrested yesterday (Wed). Reports of massive account withdrawals.


Quoting merlin
i think this whole thing is overblown. one little secret loan isnt going to bring the whole company down i just bought some butterflies on the stock, the volatility is crazy overblown right now.
Quoting JohnFX
REFCO is a very big company.

JohnFX
Enron WAS a very BIG company someday in the past

Thanks,

Nader
The bigger they are the bigger the fall.



Quoting narafa
Enron WAS a very BIG company someday in the past

Thanks,

Nader
Quoting hagadol
The bigger they are the bigger the fall.
And the larger the number of shareholders who get hurt.

Thanks,

Nader
this seems very serious now:

Refco Subsidiary Freezes Customer Accounts:
http://biz.yahoo.com/ap/051013/refco.html?.v=7
Refco Capital Markets unit out of cash !!

Liquidity insufficient at brokerage's fixed-income unit; activities halted, advisers brought in

October 13, 2005: 12:43 PM EDT

NEW YORK (Reuters) - Refco Inc., the commodities and futures brokerage whose shares have fallen more than 60 percent this week, said Thursday that the liquidity at a major company unit is no longer sufficient to continue operations, fueling concerns about the entire firm's survival.
http://money.cnn.com/2005/10/13/news...reut/index.htm
  • Post #20
  • Quote
  • Edited at 1:16pm Oct 13, 2005 1:07pm | Edited at 1:16pm
Wow, traders who will withdraw sum must cover long Dollar positions. Is serious point to consider?


Hey, then come to rapid growing broker (# 1 forecaster and rated as NJ's fastest growing company by Deloitte and touche)
Does not sound this fine?

Now this is happening EUR rallied by 50 pips. Are trader exiting Dollar longs at Refco?
kiss the trend
0 traders viewing now