We wanted you to know about an important step in Refco's Chapter 11
filing. Refco F/X Associates LLC (RefcoFX) has signed a Memorandum of
Understanding (MOU) to sell certain of our retail FX assets to Forex
Capital Markets LLC ("FXCM"). FXCM is a Futures Commission Merchant
registered with the CFTC and a member of the National Futures Association.
The MOU provides for the transfer of more than 15,000 retail client
accounts of RefcoFX.com, including yours, to an affiliate of FXCM.
Under the terms of the MOU:
Pending completion of a transaction, RefcoFX clients may continue
trading in their accounts without disruption, and
Upon completion of a transaction, all retail customer positions and
orders traded on the FX Trading Station platform will be transferred
intact, and RefcoFX account holders will be made whole, have access to 100%
of their funds, and be able to carry out normal account procedures,
including withdrawing funds, as usual.
We believe this is the first step in ultimately normalizing trading.
The MOU must be approved by the Bankruptcy Court, and the sale of the
business will occur through a court-supervised auction open to competing
bids. Thus we expect the process to take approximately 30 days to
complete.
We appreciate your continued support during this process. Refco has
set up a toll-free information line (866-327-0774) to answer additional
questions you may have. You may also visit the RefcoFX website,
www.refcoFX.com, where you can find additional information about the Chapter
11 restructuring.
We will continue to update you as more information comes available.
Sincerely,
Refco F/X Associates LLC
RISK WARNING: Trading foreign exchange on margin carries a high level
of risk, and may not be suitable for all investors. Before deciding to
trade foreign exchange you should carefully consider your monetary
objectives, level of experience, and risk appetite. The possibility exists
that you could sustain a loss of some or all of your deposited funds and
therefore you should not speculate with capital that you cannot afford
to lose. You should be aware of all the risks associated with foreign
exchange trading, and seek advice from an independent advisor if you
have any doubts. Past returns are not indicative of future results.
RefcoF/X Associates LLC and its affiliates assume no responsibility for
errors, inaccuracies or omissions in these materials. They do not
warrant the accuracy or completeness of the information, text, graphics,
links or other items contained within these materials. RefcoF/X Associates
LLC and its affiliates shall not be liable for any special, indirect,
incidental, or consequential damages, including without limitation
losses, lost revenues, or lost profits that may result from these materials.
This email is not a solicitation to buy or sell currency. All
information contained in this e-mail is strictly confidential and is only
intended for use by the recipient. All e-mail sent to or from this address
will be received by the RefcoF/X Associates LLC corporate e-mail system
and is subject to archival and review by someone other than the
recipient. RefcoF/X Associates LLC is compensated for its services through the
spread between the bid/ask prices.
