chood... refcofx was just a more integrated version of a white label of fxcm... in all likelihood, the clients margin monies r actually sitting on fxcm's accts, trading on fxcm credit lines etc... the only question is whether those monies belong to the refco DIP (bankruptcy estate) or to the clients...
Where is Trader God? Is he still saying the client Funds are safe. My position is simple, anytime you go into US Courts, it is like playing Russian Rullet. The Judges DO NOT CARE about justice or LAW. They just set on that bench and enjoy their ROYAL STATUS appointed to them by the King and approved by the aristocracy. READ STORY BELOW FXCM Ends Negotiations With Refco Creditors Monday March 20, 12:48 pm ET NEW YORK, March 20 /PRNewswire/ -- Forex Capital Markets LLC (FXCM) today announced that it has ended negotiations with the creditors of Refco, the bankrupt futures trader, to acquire the assets Refco FX Associates, Refco's unregulated currency trading operation. "We have done everything in our power to rescue the clients of Refco FX Associates," said Drew Niv, chief executive officer of FXCM. "From the very beginning our purpose has been to make their 17,000 clients whole. If successful, our efforts would have meant that every one of the 17,000 Refco F/X customers would have been paid back in full." In November 2005, FXCM agreed to acquire Refco F/X Associates for approximately $110 million, subject to an auction and to Bankruptcy Court approval. In February FXCM won the auction, since it was the only company that made an actual bid. Refco's creditors objected to FXCM's victory, claiming the price was too low. In an attempt to resolve objections to the sale of Refco F/X Associates to FXCM by a group of Refco creditors, FXCM raised its offer to $130 million, essentially bidding against itself to save the clients of Refco F/X Associates. Refco and its creditors remain unresponsive to FXCM. "While our hope remains to effect a transaction, the creditors' demands remain unreasonable and their position inflexible," continued Mr. Niv. "They leave us no choice but to abandon negotiations at this time." Forex Capital Markets LLC, one of the world's largest Forex Dealer Members, provides currency trading services to retail traders under the name FXCM (http://www.fxcm.com) and to institutional clients under name FXCM Pro (http://www.fxcmpro.com). The firm has serviced over 50,000 accounts in over 80 countries, with over a million and a half trades executed each month via its trading platform. Over 500 employees in 7 offices around the world provide 24-hour trading and support in over two dozen languages. Registered with the CFTC as a Futures Commission Merchant, FXCM has received numerous awards from the investment community, including Best Currency Broker from Shares, Best Retail Foreign Exchange Platform from FX Week and Best Foreign Exchange Specialist from Technical Analysis of Stocks & Commodities. In addition to currency trading, FXCM offers educational courses on forex trading, and provides research through DailyFX.com. FXCM will soon provide managed account programs for clients seeking investment diversification. Leveraged foreign exchange trading carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
Hey, I think FXCM should add to their warning disclosure that trading in US Markets carries a high level of risk due to the fact that U.S. Courts have not concept of property rights. Expecially if the company you are trading with gets in trouble.
I know your post was tongue in cheek but I now refuse to open an account with any firm where I have to wire the funds outside the UK, especially the US. Over the past few years the only problems I have had are firms in the US (4 times) and Switzerland, once.
Trooper, You were beat well before this matter reached a US court. Retail fx is a scam. You were beat when you risked your money with a fx retailer. I take absolutely no pleasure in pointing that out, because I too gotten taken by a fx retailer.
T/G... are you out there? Any comment on the failure of FXCM's effort to acquire the asets of RefcoFX? You dissed a lot of people on these boards who questioned your aggressive cheerleading. Anything to say for yourself?
Just to let those who have their money tied with RefcoFX know, there is an ad hoc account holder group established at Yahoo Groups. Please visit this link, http://finance.groups.yahoo.com/group/refcofxaccountholders/ (If this link does not show up properly, please go find "refcofxaccountholders" at Yahoo Groups. You will find some good information over there and we are trying to form a group representation by retaining an attorney to represent us at the hearings. One of the members already spoke with an attorney representing one of the creditors and it turns out, our money with RefcoFX is not "ring-fenced" as it should've been, meaning that we are after all considered to be just one of the creditors and that we will have to fight, as absurd as this sounds, to get our money back against the other creditors. Please send the word out about the group at Yahoo and I urge you to visit it.