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choicefx system blowup? which fcm lost tens of millions this week?

Discussion in 'General Forex Talk' started by fxwarrior01, Jan 29, 2010.

  1. fxwarrior01

    fxwarrior01 Recruit

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    hi all, from a reliable source, the choicefx system had a blowup this week and one major fcm using its system lost tens of millions of dollars. do you guys know which fcm uses the choicefx system, so that we can avoid it? would it be ibfx? fxdd? anyone knows?
     
  2. Pharaoh

    Pharaoh Colonel

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    A platform or IB having some type of system failure shouldn't somehow make money disappear from liquidity providers.

    Do you have any details of this "blowup" or a link to any information? It's a little hard to speculate on what may or may not have happened without more data.
     
  3. FXTango

    FXTango Recruit

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    It could happen if the system failure creates unwanted positions or mishedging of risk. It happens to stock market makers all the time. But millions of dollars are big numbers for such error.

    I heard from another site that the NFA was inquiring about FX brokers' usage of Choicefx system last week. Now given the info here, the timing seems uncanny.

    I just hope it is not another Refco or FXLQ type of show-down. That would really give the CFTC reasons to enforce the 10-1 leverage.

    Hope
     
  4. Pharaoh

    Pharaoh Colonel

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    I'd prefer to see something a little more concrete than just a couple of forum postings. If there really was some sort of major problem last week, there should be a pile of client complaints showing up. So far, I don't see that.

    I'm not saying nothing happened, but for an incident alleged to be of that size, I'm not seeing any of the usual fallout yet.
     

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