December 9, 2008 Dear Valued Client: We are writing to tell you important information about your futures trading account here at Alaron Trading Corporation (âAlaronâ). Alaron has entered into an agreement with Penson GHCO (âPensonâ), under which Alaron has agreed to transfer all customer accounts, including yours, to Penson. This means that, while Alaron representatives will still service your account, your account equity and positions will be carried by Penson. Therefore, absent written instructions from you to the contrary, Alaron will, effective December 12, 2008, transfer all open positions, funds and other property in your account to Penson, whose place of business is located at 600 W. Chicago, Suite 775, Chicago, Illinois 60610; telephone number (312) 356-6100. Alaron has agreed to assign to Penson all of the rights and protections which Alaron has under your customer agreement and other related documentation relating to your account at Alaron. If you do not wish to have your account transferred to Penson, please instruct Alaron in writing by 5:00 pm Central Standard Time December 11, 2008. Your options, if you do not wish to transfer, are to transfer to another futures brokerage firm of your choosing, or to liquidate your positions and close your account. Written instructions should be sent to Alaron Trading Corporation, 822 W. Washington Blvd., Chicago, Illinois 60607, Attention: Barry Isaacson, President, Alaron Futures & Options. Alternatively, you may fax or email instructions to 312-563.8297 or compliance@alaron.com. If Alaron is not notified by December 11, 2008, your account will be transferred to Penson and Alaron will continue to service your account. Of course, you may also choose to transfer your account to another FCM at any time after December 11, 2008. As we stated above, your account will still be serviced by Alaron and the account executive currently handling your account will continue to do so. Our contact information has not changed. We thank you for your continued business and support in the years to come. If you have any questions about this transfer you may contact me at 800-563-9512. Very truly yours, Barry Isaacson President, Alaron Futures and Options
Alaron used to be a clearing member of both CME and CBOT, but not any more. Looks like they have taken some hits in the last few months. From the CFTC reports they had $7.8 million in capital and $217 million in customers funds at the end of June. Down to $3.8 million in capital and $132 million in customers funds at the end of October. Regulator switched from CME to NFA.
So Alaron loses their status of FCM and now this whole thing with Penson happens between them. Im have no proof of this whole thing with Alaron and Penson but with all the trouble Alaron seems to be having per several posts I have read here, it would seem like a Penson aquisition of Alaron could be quite possible. Whether thats a good thing or bad thing you can only speculate.
You are confused as Alaron is still a FCM. Alaron is no longer a clearing firm and they are now using Penson as their clearing firm.
I think we are splitting hairs here. An FCM doesnt start clearing somewhere else unless there is something going on internally... Why would an FCM say.. "Hey, I want to pay more money in a tight economy to have someone else clear my trades". Im guessing its between 20 and 50 cents a side subtracted from a bottome line... If it works out for them, go for it... but all I am saying is that, something seems out of sorts. Deborah
Admittedly, 35 categories on one web site is a bit much, but why did we chose "Wall St. News" for this topic? It's about #12 on my list. Retail Firms Index Futures Energy Futures Metal Futures AG Futures Financial Futures Options Order Execution Chit Chat Trade Management Trading Wall St. News
I suggest protecting your assets when they move to Penson. Penson has a reputation of lending them out without authority.
Not sure what exactly is going on there but I am gone. I dont like the talk on the streets and most of you know what I mean.. Debi