Refco FX account withdrawl frozen!!!

tomcole · Oct 18, 2005

Y'all need to go read terms and conditions.

And by the way, you're not a general creditor when a firm files ch 11, you're an UNSECURED general creditor. So, get in line with the guys they buy pencils and coffee cups from.

I also think, that under ch 11 in NY, the defaulting party and the court can cherrypick which deals they honor and which they dont. In some states, this right goes back 30 or 40 days, I think.

If you have more than a few hundred bucks there, you better go get a lawyer and try to get some advice.

Deptrai · Oct 18, 2005

Chapter 9 from "Pit Bull" by Marty Schwartz. The broker went under, but clients funds were not touched. I know. That is a futures broker not a retail forex broker, however they are both regulated by the CFTC.

uninvited_guest · Oct 18, 2005

From the Refco site:

"The Refco Group has still instructed us to delay payments out of ALL Refco accounts UNTIL they sort out banking and internal matters. RefcoFX Canada accounts are the ONLY exception."

I'm in luck, its buisness as usual for Canadian RefcoFX account holders. I just checked through the live chat with Refco and I can trade AND withdraw funds

misha7 · Oct 18, 2005

Quote from Chood:

Nothing grey about it: there is NO regulation.

Chood, this is simply not true.

Just because Refco FX were not registered (their exuse to clients was that "we are under the umbrella of Refco Group blah,blah") doesnt mean that other companies aren't registered or arent following the rules.

misha7 · Oct 18, 2005

Quote from Deptrai:

If Refco FX has filed for bankruptcy, then can they touch customer's funds? Does being regulated by the CFTC and NFA mean anything? If it does not, then this will have a lot of repercussions in retail forex.

Refco FX was never regulated by NFA or CFTC in the first place. I encourage you to give a call to the NFA and find out the status (or rather lack thereof) of Refco FX Associates.

pipscooper · Oct 18, 2005

Quote from Deptrai:

Chapter 9 from "Pit Bull" by Marty Schwartz. The broker went under, but clients funds were not touched. I know. That is a futures broker not a retail forex broker, however they are both regulated by the CFTC.

Different case. In the story from the book the exchange, or rather the clearing member stood behind the customers. Forex isn't set up that way. Nobody is standing behind a given retail forex customer unless the broker/dealer buys private insurance and makes it available to its customers in case of default. I don't know of any dealers who do this.

Chood · Oct 18, 2005

Quote from misha7:

Chood, this is simply not true.

Just because Refco FX were not registered (their exuse to clients was that "we are under the umbrella of Refco Group blah,blah") doesnt mean that other companies aren't registered or arent following the rules.

Registered with whom? for what? There's no regulation of spot forex trading, period, and ESPECIALLY of the outfits that cater to small-timers and novices. Check whatever you want and wherever you'd like, and that answer never changes.

I'll add, what rules? There aren't any.

misha7 · Oct 18, 2005

Quote from Chood:

Registered with whom? for what? There's no regulation of spot forex trading, period, and ESPECIALLY of the outfits that cater to small-timers and novices. Check whatever you want and wherever you'd like, and that answer never changes.

I'll add, what rules? There aren't any.

Please go to the NFA web site and:
http://www.nfa.futures.org/ and check the Forex section

I am not arguing that forex is fully regulated. However it's ridiculous to deny all the regulations put in place by NFA/CFTC since the Commodity Futures Modernisation Act of 2000.

Deptrai · Oct 18, 2005

They told me that they are part of the Refco Group, which is regulated by the CFTC and registered with the NFA. NFA# 0198028. What I find interesting is that they are allowing Canadian citizens to withdraw from their Refco FX account starting today.

Chood · Oct 18, 2005

Quote from misha7:

Please go to the NFA web site and:
http://www.nfa.futures.org/ and check the Forex section

I am not arguing that forex is fully regulated. However it's ridiculous to deny all the regulations put in place by NFA/CFTC since the Commodity Futures Modernisation Act of 2000.

At the risk of becoming a tutor (unpaid, I'll add), the NFA is a trade association, or if you prefer a self-regulatory body, with no enforcement power or authority. It has member guidelines and, presumably, a code of conduct. How that does that help any customer get his money?

The CFTC does not regulate spot forex, period.

There is no "regulation by association," or "redress by association," so whether or not some Refco entity affiliated with RefcoFX is regulated is meaningless. That's just part of the schtick of the fx bucketeers. I mention that in reply to last poster above.

Bottom-line: see how much and how fast RefcoFX customers are paid what they're owed. Then, you can tell me all about how the so-called regulation helped them.