FOREX QUANT

December 12, 2007

Recent Discussion and Rumors on FXLQ

Filed under: Uncategorized — by TraderMade @ 11:50 pm
Tags: , ,

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Some interesting ongoing discussions in FF Forum, at page 3, page 4, and 5 of a thread regarding the recent MRA to FXLQ.
Some points in the discussion:

  • This is not another Refco. This one is very different. Not a bankruptcy story.
  • Client’s funds are in separated bank account. The amount is sufficient to cover all client’s withdrawal request, but the NFA wants to see available cash in the amount that’s exceeding all company’s liabilities before approving distributions.
  • Executives of FXLQ are said to be doing their best to pull in all of their funds located off shore. Several incoming wire in multi million dollars were done, and still more to come to meet NFA’s requirement.
  • Obviously, NFA has a certain agenda. The request to pull in all funds to US-banks was on Monday, and the MRA took place the day after (Tuesday). Everybody knows that repatriating millions of dollars especially if a large sum of them are in the form of bonds is not a one-day procedure.

Still, all we can do is just wait for things to unfold and observe any news and rumors. lol.
Anybody wants some beers?

(*)

8 Comments »

  1. Ill take some peanuts’ with that beer:)

    FXLQ has been cough red handed harboring clients funds offshore, falsifying bonds and custodial account and your candy coating this, there is no evidence they have any money neither clients nor operating in US. This guy should go to jail.

    Comment by X IBFX Clint — December 13, 2007 @ 10:37 am |Reply

  2. ME candy coating this? if those were candy coat, it wasn’t me. If you just read the post correctly, i was just pointing out what the discussion in the forum were about. they are not my opinion. i’m observing what the news and rumors i could find anywhere about this.🙂 . And i even put “discussion and rumors” as the tittle of the post. So it was not appropriate for you to say that i am candy coating this. lol. i even need to clear our client’s funds from this situation, so i need to find infos, no motives for me to candy coat it.🙂

    Comment by darma — December 14, 2007 @ 1:45 am |Reply

  3. if you want to say somebody as candy coating this, go to the links i provided, they’re there. i would also like to know their reaction on your opinion.🙂

    Comment by darma — December 14, 2007 @ 1:49 am |Reply

  4. very interesting, but I don’t agree with you
    Idetrorce

    Comment by Idetrorce — December 16, 2007 @ 2:16 pm |Reply

  5. Hi, nice site. I like it and I added it to the my blogroll.

    Comment by FX — December 16, 2007 @ 10:45 pm |Reply

  6. Sounds a little strange that they cannot sell the bonds they are holding overseas and SWIFT the money to the accounts…sounds like an excuse for a shortfall of funds or a liquidity problem they are having.
    Laters.
    Rod.

    Comment by rod — December 19, 2007 @ 6:40 pm |Reply

  7. from reading the NFA charges,,, the $38+ Million $$ BOND they supposedly had was for “services” that FXLQ Pres./CEO/OWNER Robt. Grey perfeormed for a rather small accounting firm in Switzerland or associated with some other Swiss firm. Sounds to me like a shell game – but what do I know– and even tho the NFA gave them like about 14 days they could only come up with $4-6 million dollars & their liabilities exceed $10 Million. I read that Brokers are not allowed to say or treat Investor funds any different from any other liabilities.
    Investor funds are no different than phone electric etc bills – they are all treated as ACCOUNTS PAYABLE.
    If — as it sounds– FXLQ has $6 Million in cash/assets, and $10+ Million investor deposits and other liabilities everyone would get $.60 on the dollar.
    $38 Million?? Is that a Ha Ha??
    Anyone know this sad story to be any different than as posted here?
    I have funds at FXLQ thru DC BONTA as Managing/Introducing Broker,,,,, Anyone else???
    Anyone

    Comment by forexnow — December 20, 2007 @ 8:12 am |Reply

  8. Yep….I have a little over 5 grand with them through another introducing broker….and I’ll tell ya, I’ve learned my lesson. I’m done with FOREX and running back to the Futures market where funds are at least segregated and clients have first claim over others if the broker runs into problems. I’m hoping for the best, but as soon as I heard that they lied to the Feds I realized it doesn’t look good. Good luck.

    Comment by Steve — December 24, 2007 @ 4:48 am |Reply


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