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Refco Account Security
- Thread starter Htrader
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and even if i had, u reckon on the basis of corp docs alone s.o. (qualified lawyer etc) wld have told me: huuuhh dunno man, perhaps u shld stay away from these guys if refco's in their capital ???
now, realizing that the RCM unit is a bermuda-based op, and knowing the sort of structures we were building in Bermuda, the BVIs, Caymans etc at my previous IB firm, and the 'clean-ups' we had to do from time to time, and the big blow-ups we had, yes, u bet i'm worried for the whole group now!!!!
i'm surprised u don't seem to understand what lon eagle is (very diplomatically) saying...
now, realizing that the RCM unit is a bermuda-based op, and knowing the sort of structures we were building in Bermuda, the BVIs, Caymans etc at my previous IB firm, and the 'clean-ups' we had to do from time to time, and the big blow-ups we had, yes, u bet i'm worried for the whole group now!!!!
i'm surprised u don't seem to understand what lon eagle is (very diplomatically) saying...
Quote from Apex Capital:
Please feel free to explain as to how the entire Refco Group will face a liquidity crisis, regardless of where the original problem was and more specifically . . . how Refco LLC where the segregated futures accounts are, will be effected. Please be specific.
Because banks won't care where the problem is they will cut credit lines to every Refco related company. When Barings went under they cut their lines to every merchant/private bank in the UK. Was that logical - in legal terms no but it is basic prudence. Imagine if the credit person says it is fine to lend money to another Refco company and the money is lost/frozen. Where is the upside for the guy making that decision.? It might not be right but it is a no brainer.
Furthermore if enough people ask for their funds back then the crisis become self perpetuating - again not right but a fact of life.
I will also point out again that the futures traders in the UK at Mac have apparently had their accounts frozen today.
Of course what I say is conjecture based on my experience of what happens when there are problems. Liquidity is the issue here and it will be drying up rapidly.
Quote from Lon Eagle:
Of course what I say is conjecture based on my experience of what happens when there are problems. Liquidity is the issue here and it will be drying up rapidly.
You have still yet to answer in specific fashion as to how this effects one's segregated futures account here in the United States at REFCO LLC.
I remind you that these segregated accounts at REFCO LLC are separate from capital at REFCO HOLDINGS and the amounts held in these accounts are reported on a daily basis to regulators.
I'd be interested in finding out who really did the initial shorting..
Wonder if any one got inside news as the amount of shares is obviously not day traders..ie funds etc..
Perhaps in trying to create a buying opportunity some of the funds/institutions bit of more than they could chew. .. or they? decided it clear out all for hugh profits....
its other entities remain in good standing and are doing business as usual
w
Wonder if any one got inside news as the amount of shares is obviously not day traders..ie funds etc..
Perhaps in trying to create a buying opportunity some of the funds/institutions bit of more than they could chew. .. or they? decided it clear out all for hugh profits....
its other entities remain in good standing and are doing business as usual
w
Quote from Apex Capital:
You have still yet to answer in specific fashion as to how this effects one's segregated futures account here in the United States at REFCO LLC.
I remind you that these segregated accounts at REFCO LLC are separate from capital at REFCO HOLDINGS and the amounts held in these accounts are reported on a daily basis to regulators.
Is there anyone who can explain how the segregated account is affected by this. If there would be any problem on this, segregated account means nothing to us when we decide which broker to use.
Quote from Apex Capital:
You have still yet to answer in specific fashion as to how this effects one's segregated futures account here in the United States at REFCO LLC.
I remind you that these segregated accounts at REFCO LLC are separate from capital at REFCO HOLDINGS and the amounts held in these accounts are reported on a daily basis to regulators.
what makes u dead certain nothing can happen?? been spending part of the last 2 days delving into insolvency / segregated accts / client money rules etc b/w US & UK jurisdictions, not an easy read...
say the group files for chap 11, freezes all accts even the segregated ones, how do you in specific fashion plan to recover your funds??? not being sarcastic here, i do want to know!
Quote from 2cents:
what makes u dead certain nothing can happen?? been spending part of the last 2 days delving into insolvency / segregated accts / client money rules etc b/w US & UK jurisdictions, not an easy read...
say the group files for chap 11, freezes all accts even the segregated ones, how do you in specific fashion plan to recover your funds??? not being sarcastic here, i do want to know!
Do some research.
HINT: Ever hear of the CME's clearing house?
The Exchange Clearing Corporation has never let one customer lose 1 cent in a segregated account due to the failure of an FCM.
That is a fact.
And with all due respect, I'm surprised that you did not know this.
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