FOREX QUANT

February 12, 2008

FXLQ Update: Retail Clients Have Priority

Filed under: Uncategorized — by TraderMade @ 6:44 am
Tags: , ,

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.

(*)

7 Comments »

  1. There will be fines and court/receiver/attorney costs,, plus fxlq has to have $5 Million in reserve funds now, not $1M.
    So they need $10M or so to cover $30M liabilities +$5M reserve + fines etc
    Thats a long haul.
    And they may do criminal charges that will make it very hard for Robt. Grey to raise move $funds

    Comment by forexnow (Russ) — February 15, 2008 @ 7:52 am |Reply

  2. Hey.
    Long time no read your blogs.
    Read this one..don’t look good for that company Darma.
    http://www.forexmgr.com/blog/?p=8

    Comment by rod — February 15, 2008 @ 7:21 pm |Reply

  3. Hey Rod. yes we’re sorting things out.
    im glad that we dont put all of our business with this one.
    thanks for the link🙂

    Comment by darma — February 15, 2008 @ 8:37 pm |Reply

  4. Hey,
    Thats good you didn’t have to much money with them.
    I only watching it as another guy here has money there too.
    He is not too happy about the whole thing at the moment.So will see if he cant get his money back.
    Rod.

    Comment by rod — February 18, 2008 @ 3:28 pm |Reply

  5. I hope Robert Grey claims his corporation offshore in his tax returns. Isn´t that some kind of IRS violation? hmmm

    Comment by nocash — March 15, 2008 @ 3:10 am |Reply

  6. I wonder if that judge is going to catch up with Robert Grey and his bank accounts in Panama. He still trying to apply for a brokerage license down there. How come he hasn´t reported these activities to Uncle Sugar?

    Comment by Fxloss — May 12, 2008 @ 6:44 am |Reply

  7. I wonder if that judge is going to catch up with Robert Greys´accounts in Panama? H´s still trying to setup shop down there. How come he hasn´t reported those activities to the US authorities?

    Comment by Mr. fibonacci — May 12, 2008 @ 6:47 am |Reply


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