Forex - Refco/FXCM

[Smurf1976]

It seems that there could be a financial problem at Refco (a forex broker). They have suspended some accounts it seems so if you have an account with them then you might want to play it safe and get out if you still can.

This has been discussed extensively on at least one forex forum today. Specifically, there is a lot of debate as to whether or not FXCM is also involved. FXCM's statements say no but their own website info says they are part of Refco. http://www.fxcm.com/refco-relationship.jsp

It has also been reported there that forums operated by Refco/FXCM have effectively gagged discussion of the issue.

I haven't posted the link to this other forum (it's not a competitor to ASF though - it's forex only) since that is not allowed under ASF rules but anyone who wants the link send me a PM. There is some limited info on Refco's website at http://www.refco.com/nr/nr.news.asp but of course they don't want to cause any panic.

[markrmau]

Any thoughts on this refco link?

http://www.guardian.co.uk/frontpage/story/0,16518,1592055,00.html

Turmoil in the hedge fund industry could cause turmoil in all of the futures markets. This would cause `buying opportunities' on ASX. ;)

[wayneL]

It seems that there could be a financial problem at Refco (a forex broker). They have suspended some accounts it seems so if you have an account with them then you might want to play it safe and get out if you still can.

This has been discussed extensively on at least one forex forum today. Specifically, there is a lot of debate as to whether or not FXCM is also involved. FXCM's statements say no but their own website info says they are part of Refco. http://www.fxcm.com/refco-relationship.jsp

It has also been reported there that forums operated by Refco/FXCM have effectively gagged discussion of the issue.

I haven't posted the link to this other forum (it's not a competitor to ASF though - it's forex only) since that is not allowed under ASF rules but anyone who wants the link send me a PM. There is some limited info on Refco's website at http://www.refco.com/nr/nr.news.asp but of course they don't want to cause any panic.

This is what puts me off the whole marketmaker/broker, cfd style of operation. (of which all forex brokers are) Your capital is not really secure.

Better to play futures IMNSHO.

[RichKid]

An article on the man at the centre of it all:


----------------
An Englishman in New York, and in big trouble
By Guy Dennis
October 19, 2005

To Wall Street, he seemed the quintessential Englishman. Educated at Cambridge and with an interest in a game called rugby, Phillip Bennett was noted for his immaculate appearance.

But Bennett, 57, was not the man they thought he was.....


http://www.smh.com.au/news/business/an-englishman-in-new-york-and-in-big-trouble/2005/10/18/1129401257844.html