A buddy in the Forexfactory Forum posted today an update in a thread regarding the FXLQ crisis.
I spoke to a lady at the receiver law firm. They are awaiting FXLQ and other associated parties for responses, by February 15th.
Then, they will await until March 31st until they make any formal recommendations to the judge… as FXLQ may file for appeal or settle something with CFTC by then. FXLQ has $26million in cash, and $30million in liability. They need to get $6 million to be back in business… a seemingly trivial sum of cash in this business and to meet excess fund requirements.
If in fact there is dissolution, they will recommend that retail clients have priority.
Funds will be returned within two months of March 31st….
This has been a nice indication that trading with a regulated broker, even if it’s an OTC kind of market, still is a wise choice. In an event like this, clients have a proper protection. But we’ll need to wait for another 3 months to get this premise be proven completely.