Open ECry (OEC) protects clients of troubled broker

[forsearch]

EDIT: Please see clarification in later posts.

	Quote:
	On July 24, 2007, the National Futures Association ('NFA') issued a Member Responsibility Action against Nations Investments, LLC ('Nations' or the 'Company'), which among other things, directed the Company to close all open positions of forex account customers by July 25, 2007 at 5:00 p.m. (EDT). At the same time, the NFA authorized the bulk transfer by the Company of all the accounts of its on-exchange customers to Open E Cry, LLC, another Futures Commission Merchant. Accordingly, this Notice (and the administration of the receivership) is primarily for the benefit of the former Nations forex customers. (Former Nations on-exchange commodities account customers may contact Open E Cry, LLC concerning their account at (800) 920-5808.)

And some more details here:

	Quote:
	VI. Remaining Assets and Potential Recovery Actions. Immediately prior to the appointment of the Receiver, the Company completed a bulk transfer of all of its commodity futures customers to Open E Cry, LLC. In connection with that transaction, Open E Cry agreed to pay certain amounts to the Company and/or an employee of the Company (Husain’s son). Although the Receiver has not completed his investigation, it appears that the Company has no other material assets, except (i) cash on hand, (ii) claims for payment from Open E Cry for the bulk transfer, and (iii) possible claims against the officers, directors, and members of the Company (and potentially against certain affiliates of those individuals) as well as against other third-parties arising out of (or related to) the Company’s insolvency and/or the transfers of funds out of (or the loss of funds from) the Company (including claims for the $1 million discussed above). As the Receiver’s investigation continues, therefore, additional facts and circumstances may indicate that other potential sources of recovery may exist also. Unless recoveries are made against third-parties, the funds that will be available to pay outstanding claims against the Company (customers and non-customer creditors) 5 are likely to be insufficient to pay more than a modest, pro rata distribution of 25-35% of the total amount of all claims.

Read the court document here for more details,

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA - Miami Division
Case No. 07-61058 CIV – COOKE/BROWN

-fs

[BlowFish]

Selling the assets of a company knowing that you are about to go into receivership is decidedly dodgy. Buying the assets is morally questionable (if indeed OEC new) but not illegal I think?

[brownsfan019]

Leave it to FS to try and dig something up on OEC.

Not sure if FS is pissed at me b/c I put him in his place (as did others) or what.

But, for your viewing pleasure, here is the response from OEC:

	Quote:
	The sort answer is that Nations did both Forex and Future; they got into trouble on the Forex side of their business and we worked directly with the NFA in transferring in their futures clients to OEC to help protect those accounts.

In other words, OEC CAME TO SAVE THE FUTURES ACCOUNTS AND ASSETS BEHIND THOSE ACCOUNTS.


If you actually took the time to read the entire release AND understood that NFA was involved in this, you would understand how this process actually worked. Instead, you attempt to discredit OEC simply due to your lack of knowledge.

Make sure to send your Thank You note FS to the wonderful team at OEC.

[forsearch]

Good on ya, Brownie.

Thanks for following up with OEC to put this to rest once and for all.

Of course, one could wonder why they actually PAID Nations for those accounts, but alas...

-fs

[brownsfan019]

	Quote:	forsearch
	Good on ya, Brownie. Thanks for following up with OEC to put this to rest once and for all. Of course, one could wonder why they actually PAID Nations for those accounts, but alas... -fs

fs - the process is rather simple. Available futures accounts to get at a heavily discounted price. Take over all accounts immediately vs. hoping to get some new accounts when people look for a new broker.

The same reason why JPM bought Bear Stearns, just on a small, micro scale. Could JPM have simply waited and tried to get that business? Sure. But if you buy it, you got it.

Again, same premise just on a much smaller scale. Done for illustration purposes.

[TacTrader]

Your info BF has really been a help. I was considering an account with AMP (sister of OEC) and your background info and knowledge has helped me make the decision...again, thanks!

[BlowFish]

Does anyone know Amps relationship with OEC? Are they an introducing broker or something? They have some pretty aggressive rates.

[TacTrader]

	Quote:	BlowFish
	Does anyone know Amps relationship with OEC? Are they an introducing broker or something? They have some pretty aggressive rates.

I do not know the legal ralationship but they mirrow OEC in alot of ways. The most obvious is their platform. The name is different (OEC Trader vs AMP Global) and the account forms are labeled OEC. I must say that everything I have needed so far has been spot on, even though that hasn't been much. I just opened an account, and will need some help customizing my workspaces in the near future, but I do not see that as an issue since they have been very accomodating up to now.

As far as the platform goes, I have test driven alot of them and do not think there is another front end that can beat it, especially for the price (FREE). I have been considering NInja with Zen-Fire but haven't justified it yet with the type of trading I am doing.

FWIW

[Minetoo]

It is ironic that in the summer of 2007 OEC was 'rescuing' the clients of another troubled broker while at the same time they were giving their own Canadian clients the bums' rush out the door. They attempted to foist their Canadian accounts on to Questrade, an equity trading firm with no futures trading.
The reason for this move was never made clear but they are now, once again, miraculously accepting Canadian business. Great firm.

[forsearch]

	Quote:	BlowFish
	Does anyone know Amps relationship with OEC? Are they an introducing broker or something? They have some pretty aggressive rates.

Yes, they are an introducing broker, nothing more.