Wow, I'm surprised it took this long, but obviously Refco had more important issues (i.e. their fraud). Fraud and new ownership aside, RTS US was destined to be shut. I'm surprised the underwriters didn't kill this cash hog ages ago. It's a shame. RTS in theory could have been one of the powerhouse shops. some great traders in London (and a star that moved to Montreal). A larger balance sheet than any arcade/prop shop around. Access to more markets and information than any of these shame shops. But what did they do. They tried to commoditize trading. They weren't selective in choosing traders. Set up a poor training program. Had no vested interest in their traders and provided no support. Worst of all, they relied on one antiquated model, which was to make all their money figures trading. Initially this was a great strategy, but as markets became efficient, they had no back up plan.
And before anyone questions me, do I have an axe to grind? Yes, I admit it. I traded for them (a member of their first US grad class) after being suckered in by a good marketing pitch (the only thing management was successful at). I paid my dues and finally this past summer decided to move on (just as I had turned the corner). It was fun for a while though, and want to send a shout out to my boys at RTS and my friends in London.
