Regulators and exchanges are moving to limit the damage from the implosion of Refco Inc.

Earlier this week, its former CEO was charged with securities fraud. The U.S. Securities and Exchange Commission has issued an order restricting withdrawals of equity capital, unsecured loans and advances to stockholders, partners, employees, or affiliates by Refco Securities LLC and Refco Clearing LLC.

The firms are broker-dealer affiliates of troubled Refco Inc. In the order, the commission concluded that a withdrawal of equity capital by Refco Securities or Refco Clearing, or an unsecured loan or advance from one of these two broker-dealers would reduce the broker-dealer’s liquidity and, consequently, could impair its ability to meet obligations to customers, counterparties, and clearing agencies.

At the same time, the New York Mercantile Exchange Inc. says it has also restricted the withdrawal of any capital by Refco (a clearing member on both its NYMEX and COMEX divisions) without the exchange’s prior approval. “The financial surveillance and risk management staff at NYMEX has been and is still in continuous contact with the firm regarding its clearing member obligations at the exchange,” it reports.

NYMEX reports that it has been closely monitoring the activities of Refco. It says the firm has met and continues to meet all of its obligations at NYMEX and is in good standing. All customer positions and funds held by Refco are specifically segregated from firm assets.

The Commodity Futures Trading Commission adds that it has been monitoring closely the unfolding situation at Refco. “CFTC auditors and attorneys are presently in the process of re-confirming that Refco LLC’s customer funds on deposit remain uncompromised and that the capital requirements of Refco LLC are being met,” it says.

The New York Board of Trade reports that Refco continues to be a member of the exchange and also a member of the New York Clearing Corporation, which clears all exchange trades. Refco has met and continues to meet its obligations and remains in good standing, it says.

And, the Chicago Mercantile Exchange Inc. adds that Refco also remains in good standing with it. The CME’s Risk Committee has also restricted Refco from withdrawing capital without its permission and has required Refco to submit weekly capital computations and segregated funds computations. CME audit and financial surveillance staff are also monitoring current activities within the firm, including customer-segregated balances, on a real-time basis, it adds.