Dear Client:
We wanted you to know about an important step in Refco's Chapter 11
case.
Judge Robert Drain of the U.S. Bankruptcy Court for the Southern
District of New York has approved bidding procedures to auction certain
assets of Refco FX Associates LLC, including the company's more than 15,000
retail accounts.
Upon completion of the auction and sale of these assets, which we hope
will occur in February, please note the following:
· All Refco FX customer positions and orders traded on the FX Trading
Station platform will be transferred intact;
· Those Refco FX account holders will have access to 100% of their
funds on deposit, net of their account trading activity since Oct. 17;
· Refco FX account holders will be able to carry out normal account
procedures, including withdrawing funds, as usual.
Pending completion of a transaction, RefcoFX clients may continue
trading in their accounts.
Refco FX has entered into an agreement to sell the assets to Forex
Trading LLC and Forex Capital Markets LLC ("FXCM"), a Futures Commission
Merchant registered with the CFTC and a member of the National Futures
Association. FXCM has bid $110 million dollars for assets, including the
RefcoFX retail accounts.
However, if there is more than one "qualified bidder," an auction would
be held on January 26, 2006. A hearing to approve the sale to the
winning bidder will be held at the U.S. Bankruptcy Court on January 27. If
the court approves the sale, we hope the transaction will close in
February.
"We are gratified with the court's approval of the bidding procedures
and look forward to completing the sale process quickly," said Robert
Dangremond, Refco's chief executive officer.
Mr. Dangremond also said that any alternative bid would also need to
include the assumption of Refco FX customer liabilities, providing a
satisfactory outcome for Refco FX customers.
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.
We expect to continue to update you as more information becomes
available.
For questions not relating to the above, please email
[email protected].
Best Regards,
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.
Refco F/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. Refco F/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 Refco F/X Associates LLC corporate e-mail
system and is subject to archival and review by someone other than the
recipient. Refco F/X Associates LLC is compensated for its services
through the spread between the bid/ask prices.