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NEW YORK, Oct 17 (Reuters) - Refco Inc's (RFX.N: Quote, Profile, Research) regulated futures brokerage is expected to file for bankruptcy protection imminently, a source familiar with the matter said on Monday.

Investment bank Greenhill & Co (GHL.N: Quote, Profile, Research) will run an auction for the futures brokerage after the bankruptcy filing the source said. Investment fund J.C. Flowers remains the leading bidder for the unit

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Since apparently there is no capital shortage and futures trading and clearing have been going along as normal, the bankruptcy filing may not impact customer trading at all. The CME certainly hopes so, Refco, LLC is 10% of their volume. Withdrawals may or may not be restricted, but the auction should be relatively quick and Refco will soon be but an aggravating memory.

Too bad reporters can't get it right. No bankruptcy for Refco, LLC.

NEW YORK, Oct 17 (Reuters) - Troubled commodities brokerage Refco Inc. (RFX.N: Quote, Profile, Research) said on Monday it had filed for bankruptcy protection as it struck a deal to sell its core futures brokerage business to a group of private equity investors for $768 million.

New York-based Refco said it and certain subsidiaries filed for bankruptcy protection on Monday as part of the memorandum of understanding with investors.

None of Refco's regulated subsidiaries -- its futures brokerage business, which is conducted through Refco LLC, Refco Overseas Ltd. and Refco Singapore Ltd, and its broker-dealer, Refco Securities LLC -- filed for bankruptcy protection, it said.

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