https://www.marketwatch.com/story/trading-scheme-may-cost-market-almost-1-bln-broker-ceo-says My memory of the incident was a bit hazy but TP covered minority shareholder losses.
Perhaps, your students are doing a pair trade —Long dogie coin (sorry I haven’t heard this) and short Bitcoin. You should be happy with your students despite look dumb. At least, they are willing to throw real money in the market and try to learn about the market instead of learning useless CAPM model or supply & demand curve. First hand experience is better than just learning from academic books.
From their financial statements: - Ending client equity of $288.6 billion, 66% higher than prior year and 7% higher than prior month. - Ending client margin loan balances of $39.0 billion, 26% higher than prior year and 18% higher than the prior month. - Ending client credit balances of $77.7 billion, including $2.9 billion in insured bank deposit sweeps What are actually "client margin loan balances" and "client credit balances"? Could someone explain?
This. Petterfy is an old school trader and it shows in IB's attitude to risk management - though at this point it's not clear how involved he is in the day to day, and as the IB downtime a few weeks ago showed, they aren't immune to the ill effects of cutthroat cost/market share wars against opponents funded by endless VC capital. The time to really worry will be when he exits the stage, and they stop responding in this way.
client loan balances - clients borrowing on margin Ending credit balances - cash clients are holding wild numbers for DARTs just came in for Jan For January, Interactive Brokers Group (IBKR +6.7%) reported 3.3M Daily Average Revenue Trades ((DARTs)) (+223% Y/Y and +43% M/M); 656 annualized average cleared DARTs per client account. Ending client equity stood at $313.4B (+78% Y/Y and +9% M/M) including $2.43B of client equity acquired from Folio Investments; ending client margin loan balances of $40.8B (+49% Y/Y, +5% M/M). Ending client credit balances of $82.7B (+40% Y/Y, +6% M/M), including $2.7B in insured bank deposit sweeps. https://seekingalpha.com/news/36567...k-3&utm_medium=email&utm_source=seeking_alpha