Futex - company's financial situation

vanillaman

Member
67 6
The company behind Futex is Independent Derivative Traders Ltd. As of 31 May 2014 they had exactly £1,049,610 of current assets on their balance sheet. Considering they had about 70 traders at that time, that's only £15,000 per trader. That's enough margin for around 10 lots of FESX. This means the company can't give its traders the size they would need in order to achieve P&L necessary for a decent living.
These are pure facts behind all the smoke and mirrors. You can trade company's funds but these funds are not very large. Then you have a desk fee of £1,500, 40% of your profits and a tax of 20%. Simple maths.
That is a little presuming indeed.... It is possible that current assets that they post publicly are not part of the actual fund itself which may well be locked up in some BVI shell, I am guessing that most of us have life experience and no how to make the tax man uncomfortable, so in my opinion that is a poor judgement measure for any company. Public record is normally full of holes.
 

bootsyjam

Active member
219 19
That is a little presuming indeed.... It is possible that current assets that they post publicly are not part of the actual fund itself which may well be locked up in some BVI shell, I am guessing that most of us have life experience and no how to make the tax man uncomfortable, so in my opinion that is a poor judgement measure for any company. Public record is normally full of holes.
Well considering what has just happened there then maybe not:(
 

bootsyjam

Active member
219 19
http://www.profit-loss.com/articles/news/buy-side/injunction-halts-trading-at-futex

Can't find any more info. Have emailed the person I know there but lost his number as my new phone dropped a whole bunch of them as they weren't saved to the SIM on my old phone.
A mate of mine who knew someone who used to work there has been told that they have 'gone bust' but could not get any more info other than that this ex-trader at futex said "they book sh*t." An interpretation of that=they don't book decent profits which explains their courses to make income. So it's all smoke and mirrors.

Judging from the info it appears a trader tried to take money out and found out that he/she couldn't, most likely due to lack of funds in the comingled accounts (I don't think trader funds were segregated at the futex level, but were segregated at the Clearer (Marex) level). Hence the injunction. Shocking stuff.
 
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counter_violent

Legendary member
9,459 2,387
http://www.profit-loss.com/articles/news/buy-side/injunction-halts-trading-at-futex

Can't find any more info. Have emailed the person I know there but lost his number as my new phone dropped a whole bunch of them as they weren't saved to the SIM on my old phone.
A mate of mine who knew someone who used to work there has been told that they have 'gone bust' but could not get any more info other than that this ex-trader at futex said "they book sh*t." An interpretation of that=they don't book decent profits which explains their courses to make income. So it's all smoke and mirrors.

Judging from the info it appears a trader tried to take money out and found out that he/she couldn't, most likely due to lack of funds in the comingled accounts (I don't think trader funds were segregated at the futex level, but were segregated at the Clearer (Marex) level). Hence the injunction. Shocking stuff.
You could ask trader dante via social media, he must know people who work(ed) there
 

rsh01

Experienced member
1,184 299
You could ask trader dante via social media, he must know people who work(ed) there
A whole bunch of them post on twitter under futexlive handle, only one I know still active is brannigan @bjb_futexlive .....though they are still sending out marketing emails for trader courses, now at 70% discount ffs.

It's not even as if anyone lost a chunk it was just being siphoned off if what has been said so far is true. A modern day ponzi. That's why Marco was so hard to get hold of.
 

DT

Well-known member
312 38
I guess selling training courses is a good indicator that the previous business model doesn't work so well these days.
 

bootsyjam

Active member
219 19
I guess selling training courses is a good indicator that the previous business model doesn't work so well these days.
I don't know what the model is unless it's embezzlement. Not having the money to pay a trader his earnings? Hmmm if they were knowingly operating whilst insolvent that makes the directors personally liable.
 

DionysusToast

Legendary member
5,963 1,498
Anyone that knows what is going on at Futex right now has been told in confidence.

So until announcements are made, it's unlikely any accurate gossip will come through.

Bit too early to write them off....
 

rsh01

Experienced member
1,184 299
Anyone that knows what is going on at Futex right now has been told in confidence.

So until announcements are made, it's unlikely any accurate gossip will come through.

Bit too early to write them off....
The 'accurate gossip' is traders couldn't withdraw their cash.

I agree, we don't have full info, but theres enough reason to speculate that they're are ****ed.
 

vanillaman

Member
67 6
http://www.profit-loss.com/articles/news/buy-side/injunction-halts-trading-at-futex

Can't find any more info. Have emailed the person I know there but lost his number as my new phone dropped a whole bunch of them as they weren't saved to the SIM on my old phone.
A mate of mine who knew someone who used to work there has been told that they have 'gone bust' but could not get any more info other than that this ex-trader at futex said "they book sh*t." An interpretation of that=they don't book decent profits which explains their courses to make income. So it's all smoke and mirrors.

Judging from the info it appears a trader tried to take money out and found out that he/she couldn't, most likely due to lack of funds in the comingled accounts (I don't think trader funds were segregated at the futex level, but were segregated at the Clearer (Marex) level). Hence the injunction. Shocking stuff.
I am a little curious, this company may be in trouble but they clearly had a good phase at some point... Is it not the same traders that sit with them are suppose to make them money? So how come they are all complaining? I am not very clear on this, maybe someone else can shed light.

I will never run a prop firm, especially in London not only is the UK culture one built solidly around productive jobs like plumbing, building and that kind of thing with the rest piling into Real estate and high finance in the big 4, mainly IT because the rest of the jobs are just Europeans coming over from Germany and other parts of Europe. So to run a firm that speculates in assets feels a little daft, it is more of an American dream. In the UK the idea is to get a job with a brand name to put on your CV. So I am not surprised if they are now branded as a scam. As an individual you can do well speculating if you know what you are doing but brokers don't make it easy. To start hiring people that's just another story.

There are a few of them offering courses, I have nothing against this because in truth the worst of them can educate the army of non-educated Forex traders to a descent standard. They should have probably stuck to selling courses and trading privately. The two don't mix, either you are teacher of science or a scientist, don't think you can be a good teacher if you concerned about practising your science and vice versa, a student will feel like a fly buzzing in your ear. Well, I guess they are finding out the hard way. In my opinion people want to trade for a job, they should get their own cash and set up shop or get a job.
 

bootsyjam

Active member
219 19
"The company behind Futex is Independent Derivative Traders Ltd. As of 31 May 2014 they had exactly £1,049,610 of current assets on their balance sheet. Considering they had about 70 traders at that time, that's only £15,000 per trader. That's enough margin for around 10 lots of FESX. This means the company can't give its traders the size they would need in order to achieve P&L necessary for a decent living."

According to an article in the Sunday Times this weekend, a trader was trying to take out millions. So if that was their real assets then they were well short. Weird weird weird.