The fact that IB didn't give clients at least 30 days notice to close their accounts from the fact their futures positions are no longer insured supports my thesis theives have honor. How can SIPC name be on IB website since your 'univesal' account is not insured in the futures account. I'm suspecting that there is no such thing as a 'universal' account. and cash in ibd was never insured. And IB making an offer to buy mf global a few days on the weekend it wen bankrupt? it's hogwash. IB was probaby and counter party risk or something. nobody goes and makes an offer to buy another company over the weekend. blame finra and SEC for allowing such b.s. advertising,,there is no such thing as a universal account.and your money is not segregate ,,in other words it's a LIE or deception. old fashion LIE!
Do you know how big a deal is? It means your cash in futures is not insured and your account may not be insured if firm become insolvent like MF global since these firms use your cash to trade the market. if firms loses money, the exchange takes the money from the brokers clearing account. that money is client money..that is the missing money..the money is loss to the wall street casino..the money is not missing it's transferred to pay for debts...all debts must be 'settled' in the exhange. the money is gone. or lost. MF global lost clients money.
no FCM insures futures account because futures is too leverage and risk like 90% leverage okay nobody will insure it. and the gov't couldn't care less about insuring a casino in zero sum game. the fact is retail traders will lose their money from market losses than loss from firm insolvency. and if it's hedge funds it's house money they lose if firm goes insolvent. IB is the only retail firm that sells it's futures unversal account or cash as insured by the SIPC, sweeping was the technical loophole to say it's 'insured' when if argued it is not really insured. and sipc is pizzzed that they are insuring money at risk in futures market.
it's advertising fraud. your tell customer it's insured than change it in a day's notice saying it's now unisured. and they dont' even sweep anymore? sipc and finra should never have approved these universal accounts as futures accounts in most FCM are not insured for good reason...look at MF global,,it's insolvent from bad bets.
Hmm that's interesting - there may be a contradiction there unless as you say there is an interpretation that the transactions are with IBM LLC, not IB Canada.
I agree. However, I view it as a longer-term positive step as it peels back one more layer of the implied subsidies speculators have been living off.
I took IB-AN's response earlier to say that the ability to sweep fully would be restored within the next couple of weeks as a user option. Maybe what they are really saying here is "Choose the option of sweeping if you want, but it won't be the default any more and it is uncertain if it will be acceptable to the SIPC." But I agree that the whole notion of "Universal Account" may be open to question as far as SIPC insurance.