Refco Customers Still Trading
I am trying to figure out how to select a futures broker with a sound financial background, but I keep getting sidetracked.
I keep running into information about Refco and what happened to them and I started thinking if they are in bankruptcy can the judge use any of the customer’s money to pay creditors. I have seen judges do a lot of stuff and wondered how they got away with it.
What I have found out is, because the futures customers with accounts through Refco have their money in a segregated funds account at non affiliated banks like Harris Trust and Bank in Chicago. These accounts are not considered an asset of Refco's and the judge can not use this money to pay any debts of Refco’s.
I have also been searching to see what the customers are saying and it seems no one is complaining about not having access to their accounts. So it looks like everyone is still able to execute their trades and have access to their funds.
I keep running into information about Refco and what happened to them and I started thinking if they are in bankruptcy can the judge use any of the customer’s money to pay creditors. I have seen judges do a lot of stuff and wondered how they got away with it.
What I have found out is, because the futures customers with accounts through Refco have their money in a segregated funds account at non affiliated banks like Harris Trust and Bank in Chicago. These accounts are not considered an asset of Refco's and the judge can not use this money to pay any debts of Refco’s.
I have also been searching to see what the customers are saying and it seems no one is complaining about not having access to their accounts. So it looks like everyone is still able to execute their trades and have access to their funds.
