The next refco?

[Apex Capital]

Quote from zf trader:

Jim,

You completely missed the point of the thread. What I really wanted is a knowledgeable refco account holder to say that I saw events A,B and C and in hindsight that should have been a warning sign. The other thing that I wanted to get to was the difference between American and European clearing and how that effects account security.

If that is in fact the case, then why do you initiate this thread with the heading:

"Is IB the Next Refco"

 

[zf trader]

Joey,

Does US federal insurance cover money put up as performance bonds in LIFFE or EUREX?

 

[crazy_trader]

Why worry? If IB is member of SIPC, you are cover up to $100k + additional $900k
http://www.interactivebrokers.com/en/accounts/accountProtection.php?ib_entity=llc

 

[riskarb]

This is the most absurd phucking thread I have had the displeasure of reading. Please bury this turd.

Oh and ZF, it was your parents who took the unacceptable risk.

 

[Apex Capital]

Quote from riskarb:

This is the most absurd phucking thread I have had the displeasure of reading. Please bury this turd.

Oh and ZF, it was your parents who took the unacceptable risk.

Risk, you hit the nail right on the head, as usual my boy!

Seriously, some of the logic that I have seen exhibited on ET regarding the REFCO situation is a very sad reflection of how incredibly ignorant our society has become. It took almost about 50 posts before most people here figured out that the 15 day moratorium on the withdrawal of funds had to do with REFCO Capital Markets, and NOT REFCO LLC where most people's segregated futures accounts are held. Moreover, few people here have even exhibited the slightest understanding of what the CME and the Exchange Clearing Corp's role is in this with regard to the segrerated accounts of REFCO LLC.

No one wants to make sure that they post factual information.
No one wants to actually use their brains and think for a moment.
It must be far too difficult.
How sad.

 

[DTK]

Quote from jimrockford:

I have my own criticisms of the way IB handles certain technology and customer service issues, but I don't see any basis for anybody to suggest that IB might be involved in outright fraud or theft like Refco. I think that the title of this thread, "Is IB the next refco", is a totally irresponsible, undeserved, and outrageous smear against IB's reputation. I have been reading this board for years, and seen many legitimate criticisms of IB, and made some of them myself, but just recently, it seems that there has been a pattern of outrageous, disgusting threads making totally baseless attacks against IB.

Quote from trend_guy:

I second that!

Third. (but I think their customer service is just fine)

 

[misha7]

Quote from zf trader:

As I sit here thinking about how stupid those guys were to have accounts at a firm like refco it makes me wonder if there was anyway to see this coming? That makes the next question is there anything that I can do as a IB account holder right now to see if this scenario could unfold with my broker too?

I am not accusing anyone of anything, I have always thought of IB being more professional than refco but I think it would be wise to make myself aware of any risks I might be taking.

EXCELLENT post, and a very timely question. "could we see it coming"? Unfortunately most people still think it is some sort of accident, "bad luck", CEO conspiracy... well if you care to look into the history of the company u will not find to too surprising, just check the number and the nature of NFA/CFTC cases against Refco over the years. To quote a former FXCM employee (and please dont ask for his name): "whenever we needed to do something shady we went through refco".

But the real problem is that people prefer to use their greed rather than intelligence... so their clients will make no conclusions and go with the next "biggest mightiest guarantee stop orders and everything u can think of totally serured insured and regulated" firm out there... and history will repeat itself again and again...

 

[riskarb]

Quote from misha7:

To quote a former FXCM employee (and please dont ask for his name): "whenever we needed to do something shady we went through refco".

Cool, you just commited libel. I wouldn't make such assertions unless what you're paraphrasing is in writing or on tape.

 

[Apex Capital]

Quote from riskarb:

Cool, you just commited libel. I wouldn't make such assertions unless what you're paraphrasing is in writing or on tape.

Exactly.
Leave it to some youngster to shoot off his mouth with no substantiation whatsoever . . .
Isn't life grand???

No one needs to be accountable for what they say.
You can just say anything that you want!

 

[misha7]

Quote from riskarb:

Cool, you just commited libel. I wouldn't make such assertions unless what you're paraphrasing is in writing or on tape.

Oh how scary. I am not make an assertion to whether this is true or not. Take it for what it is. If you think I am making it up...well hope it makes you feel better.