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Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 11698 |
06-01-12 02:00 AM
Quote from jackpearson:
Don,
How do you see the Penson issue being resolved? cleanly via a purchase by another entity? or messy such as SIPC? or, do you think Penson will continue forward with the equity clearing.
Thanks & I've enjoyed your posts over the years on ET. Thanks for taking your time posting here.
I really can't say much more than I already have. Suggesting that the traders find a new home....and, I don't necessarily mean Bright Trading (many are of a different ilk).... but there are places to go, under solid Clearing firms.
Don
__________________
Don Bright (not an alias)
Bright Trading, LLC
http://www.stocktrading.com
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DHOHHI
Registered: Apr 2003
Posts: 1348 |
06-01-12 03:24 AM
Quote from Grandluxe:
So what does this mean, this Apex spin off..do we have to submit new forms,etc?
I doubt they want to deal with a million or more clients paperwork. I'd guess the Penson paperwork transfers and any changes will be communicated to clients so that if they choose to leave for another clearing firm they can do so. My main curiousity is whether commissions will remain the same. Penson was struggling with lower trading volume so some small increase in costs wouldn't be totally unexpected.
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Swan Noir
Registered: Jun 2009
Posts: 1704 |
06-01-12 03:48 AM
This was far from "out of the blue". My guess is all of the ducks are in a row and, with normal glitches on some small percentage of accounts, this will go pretty well. There is likely to be increased stability -- the risk is largely gone.
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Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 11698 |
06-02-12 01:29 AM
Quote from Swan Noir:
This was far from "out of the blue". My guess is all of the ducks are in a row and, with normal glitches on some small percentage of accounts, this will go pretty well. There is likely to be increased stability -- the risk is largely gone.
I would hope so, for the industry. But not sure I can go along with "risk is largely gone" - just doesn't make sense, on several levels.
I can't, of course, get into details here...and seriously hope everyone is kept whole, and the the "good guys" (firms) survive.... just keep thinking that something's not right.
Don
__________________
Don Bright (not an alias)
Bright Trading, LLC
http://www.stocktrading.com
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Swan Noir
Registered: Jun 2009
Posts: 1704 |
06-02-12 02:47 AM
An entity with the weight of Knight is unlikely to put itself in a position where, on the futures side, the segregated funds are at risk under their stewardship so that leaves the securities side where most of the retail accounts are fully covered by SPIC and many others are largely covered.
On both sides -- futures and securities -- it is possible that those smaller firms clearing through Penson will face increased costs or simply be shut out of the game. From that point of view you are correct Don; since higher rates or worse, fewer small firms, will be contrary to the public interest. Until the dust settles there does remain some risk for some of the players. And, since your ear is much closer to the ground, I simply assume that the details you can't speak of here give you more insight into the things that can go sideways.
Quote from Don Bright:
I would hope so, for the industry. But not sure I can go along with "risk is largely gone" - just doesn't make sense, on several levels.
I can't, of course, get into details here...and seriously hope everyone is kept whole, and the the "good guys" (firms) survive.... just keep thinking that something's not right.
Don
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