Chapt 11: Broker & Custodian Bank

Discussion in 'Trading' started by virtualmoney, Sep 17, 2008.

  1. virtualmoney

    virtualmoney

    What happens to one's trading account funds if the custodian bank(s) for the broker files for chapter 11 but the broker is still ok? ....see chapter 12? :p
     
    #1     Sep 17, 2008
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  2. MTE

    MTE

    As long as your account is segregated you are OK as those funds are not part of the bank's funds. The problem is only if you do OTC trades with them then your account is not segregated.
     
    #2     Sep 17, 2008
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  3. virtualmoney

    virtualmoney

    OTC? so CFDs and forex brokers are not ok?:confused:
    where are segregated and not segregated funds kept?
     
    #3     Sep 17, 2008
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