Been asked to move to another FCM

I am a bit skeptical...

 

plausible
probably a nervous junior risk manager
and a compliance department full of the usual muppets

 

Seems quite strange to me given that he's trading STIR spreads which aren't high risk at all.

 

Quick update, I've opened a new account and have now sent the transfer form. I have informed them and I still have my positions so I guess that's a good sign.

Being on the edge of a margin call is not an issue. Even a margin call is not an issue, it is a regular practice nowadays as all the FCMs with big clients try to encourage them to either buy T-Bills or to move cash out of the account which makes margin calls more frequent.

 

Can you name them now?

 

Yes my account is now closed and all transferred to my new FCM.
The FCM that gave me 48h to close my positions was Wedbush introduced by DDT.

 

You did a good service by posting that information. Thank you.

 

Are you sure it was Wedbush futures that closed you down and not DDT? I've never heard Wedbush or KCG Futures do this before to anyone without cause.

 

There's a bit of a reorg going on among the top FCMs that's creating space for Wedbush to reposition themselves as more of an upper middle class FCM. They are updating and homogenizing their client mix to achieve this goal.

No idea who DDT is but the 48 hour thing could very well be from them.

Sometimes the FCM + client is just a bad fit.

 

Definitely sure that this was Wedbush. This came from their Chief Risk Officer. DDT has no power over the FCM, they just introduce new accounts and get a profit share of the commissions. That was also the risk guy that gave me 48h to close my positions.