Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Guest forsearch

OEC protects clients of troubled broker

Recommended Posts

Guest forsearch

EDIT: Please see clarification in later posts.

 

 

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:

 

 

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

Edited by mister ed
Clarifying positive role of OEC

Share this post


Link to post
Share on other sites

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?

Share this post


Link to post
Share on other sites

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:

 

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.

 

;)

Edited by brownsfan019

Share this post


Link to post
Share on other sites
Guest 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

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites

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!

 

:)

Edited by TacTrader
Spell check

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

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.:puke:

Share this post


Link to post
Share on other sites
Guest forsearch
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.

Share this post


Link to post
Share on other sites

Ahh Thanks, I have no issue with IB's there are some pretty well though of ones in some trading 'communities'. It all makes sense now...I thought they might be but generally its unwise to assume :)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 4th April 2025.   USDJPY Falls to 25-Week Low as Safe Havens Surge and Markets Eye NFP Data.   Safe haven currencies and the traditional alternative to the US Dollar continue to increase in value while the Dollar declines. Investors traditionally opt to invest in the Japanese Yen and Swiss Franc at times of uncertainty and when they wish to avoid the Dollar. The Japanese Yen continues to be the best-performing currency of the week and of the day. Will this continue to be the case after today’s US employment figures?   USDJPY - NFP Data And Trade Negotiations The USDJPY is currently trading at a 25-week low and is witnessing one of its strongest declines this week. The exchange rate is no longer obtaining indications from the RSI that the price is oversold. The current bullish swing is obtaining indications of divergence as the price fails to form a higher high. Therefore, short-term momentum is in favour of the US Dollar, but there are still signs the Japanese Yen can regain momentum quickly.       USDJPY 1-Hour Chart     The price movement of the exchange rate in both the short and long term will depend on 3 factors. Today’s US employment data, next week’s inflation rate and most importantly the progress of negotiations between the US and trade partners. If today’s Unemployment Rate increases above 4.1%, the reading will be the highest seen so far in 2025. Currently, the market expects the Unemployment Rate to remain at 4.1% and the Non-Farm Payroll Change to add 137,000 jobs. The average NFP reading this year so far has been 194,000.   If data does not meet expectations, US investors may continue to increase exposure away from the Dollar and to other safe-haven assets. Previously investors were expecting only 2 rate cuts this year from the Federal Reserve, however, most investors now expect up to 4. If today’s employment data deteriorates, economists advise the Federal Reserve may opt to cut interest rates sooner.   Therefore, it is important to note that today’s NFP will influence the USDJPY to a large extent. Whereas in the longer-term, trade negotiations will steal the spotlight. If trade partners are able to negotiate the US Dollar can correct back upwards. Whereas, if other countries retaliate and do not negotiate the US Dollar will remain weak.   USDJPY - The Yen and the Bank of Japan The Japanese Yen is the best-performing currency in 2025 increasing by 6.70% so far. Risk indicators such as the VIX and High-Low Indexes continue to worsen which is positive for the JPY as a safe haven currency.   Yesterday Japan released March business activity data that came in weaker than expected: the Services PMI dropped from 53.7 to 50.0, while the Composite PMI fell from 52.0 to 48.9. The data is the lowest in two years. These figures could hinder further interest rate hikes by the Bank of Japan. However, most economists still expect the Bank Of Japan to hike at least once more. It's also important to note, that even if the BOJ opts for a prolonged pause, a cut is not likely.   Additionally, a 24% tariff was imposed on Japanese exports to the US yesterday. Prime Minister Mr Ishiba expressed disappointment over Japan's failure to secure a tariff exemption and pledged support measures to help domestic industries manage the impact.   Key Takeaway Points: US Dollar Weakens, Safe Havens Rise: The Japanese Yen and Swiss Franc continue to gain as investors shift away from the US Dollar. USDJPY Under Pressure: USDJPY trades at a 25-week low, with short-term momentum favouring the Dollar but long-term trends pointing to potential Yen strength. NFP and Unemployment Crucial: Today’s Non-Farm Payrolls and unemployment figures will heavily influence short-term USDJPY. On the other hand, trade negotiations will dictate longer-term trends. Japan Faces Mixed Signals: Despite weak PMI data and new US tariffs, the Japanese Yen remains strong. Economists expect at least one more rate hike from the Bank of Japan, but no cuts are in sight. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • YUM Yum Brands stock, nice breakout with volume +34.5%, from Stocks to Watch at https://stockconsultant.com/?YUM
    • Date: 3rd April 2025.   Gold Prices Pull Back After Record High as Traders Eye Trump’s Tariffs.   Key Takeaways:   Gold prices retreated after hitting a record high of $3,167.57 per ounce due to profit-taking. President Trump announced a 10% baseline tariff on all US imports, escalating trade tensions. Gold remains exempt from reciprocal tariffs, reinforcing its safe-haven appeal. Investors await US non-farm payroll data for further market direction. Fed rate cut bets and weaker US Treasury yields underpin gold’s bullish outlook. Gold Prices Retreat from Record Highs Amid Profit-Taking Gold prices saw a pullback on Thursday as traders opted to take profits following a historic surge. Spot gold declined 0.4% to $3,122.10 per ounce as of 0710 GMT, retreating from its fresh all-time high of $3,167.57. Meanwhile, US gold futures slipped 0.7% to $3,145.00 per ounce, reflecting broader market uncertainty over economic and geopolitical developments.   The recent rally was largely fueled by concerns over escalating trade tensions after President Donald Trump unveiled sweeping new import tariffs. The 10% baseline tariff on all goods entering the US further deepened the global trade conflict, intensifying investor demand for safe-haven assets like gold. However, as traders locked in gains from the surge, prices saw a modest retracement.   Trump’s Tariffs and Their Market Implications On Wednesday, Trump introduced a sweeping tariff policy imposing a 10% baseline duty on all imports, with significantly higher tariffs on select nations. While this move was aimed at bolstering domestic manufacturing, it sent shockwaves across global markets, fueling inflation concerns and heightening trade war fears.   Gold’s Role Amid Trade War Escalations Despite the widespread tariff measures, the White House clarified that reciprocal tariffs do not apply to gold, energy, and ‘certain minerals that are not available in the US’. This exemption suggests that central banks and institutional investors may continue favouring gold as a hedge against economic instability. One of the key factors supporting gold is the slowdown that these tariffs could cause in the US economy, which raises the likelihood of future Federal Reserve rate cuts. Gold is currently in a pure momentum trade. Market participants are on the sidelines and until we see a significant shakeout, this momentum could persist.   Impact on the US Dollar and Bond Yields Gold prices typically move inversely to the US dollar, and the latest developments have pushed the dollar to its weakest level since October 2024. Market participants are increasingly pricing in the possibility of a Fed rate cut, as the tariffs could weigh on economic growth.   Additionally, US Treasury yields have plummeted, reflecting growing recession fears. Lower bond yields reduce the opportunity cost of holding non-yielding assets like gold, making it a more attractive investment.         Technical Analysis: Key Levels to Watch Gold’s recent rally has pushed it into overbought territory, with the Relative Strength Index (RSI) above 70. This indicates a potential short-term pullback before the uptrend resumes. The immediate support level lies at $3,115, aligning with the Asian session low. A further decline could bring gold towards the $3,100 psychological level, which has previously acted as a strong support zone. Below this, the $3,076–$3,057 region represents a critical weekly support range where buyers may re-enter the market. In the event of a more significant correction, $3,000 stands as a major psychological floor.   On the upside, gold faces immediate resistance at $3,149. A break above this level could signal renewed bullish momentum, potentially leading to a retest of the record high at $3,167. If bullish momentum persists, the next target is the $3,200 psychological barrier, which could pave the way for further gains. Despite the recent pullback, the broader trend remains bullish, with dips likely to be viewed as buying opportunities.   Looking Ahead: Non-Farm Payrolls and Fed Policy Traders are closely monitoring Friday’s US non-farm payrolls (NFP) report, which could provide critical insights into the Federal Reserve’s next policy moves. A weaker-than-expected jobs report may strengthen expectations for an interest rate cut, further boosting gold prices.   Other key economic data releases, such as jobless claims and the ISM Services PMI, may also impact market sentiment in the short term. However, with rising geopolitical uncertainties, trade tensions, and a weakening US dollar, gold’s safe-haven appeal remains strong.   Conclusion: While short-term profit-taking may trigger minor corrections, gold’s long-term outlook remains bullish. As global trade tensions mount and the Federal Reserve leans toward a more accommodative stance, gold could see further gains in the months ahead.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • AMZN Amazon stock, nice buying at the 187.26 triple+ support area at https://stockconsultant.com/?AMZN
    • DELL Dell Technologies stock, good day moving higher off the 90.99 double support area, from Stocks to Watch at https://stockconsultant.com/?DELL
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.