http://online.wsj.com/article/BT-CO-20120621-714360.html If that link doesn't work, click the link pointed to by this search. https://www.google.com/search?q="Online+Brokers+Decry+Cash+Crunch+in+Clearing+Firm+Deal"
"On June 7, shortly after the deal between Peak6 and Penson completed, TradeKing was told that the firm would need to send Apex an additional $13 million to back up trades, vastly outstripping TradeKing's prior clearing deposit of $100,000, according to court documents filed by the firm. That figure has backed up the firm's approximately 200,000 retail customer accounts for more than two years, TradeKing told the court." Only 50 cents a customer for a clearing deposit? The SEC and SIPC allow this nonsense? Just one customer with a bad trade can wipe out multiples of $100,000. Penson must have been desperate for any business it could get.
They self-clear. But both Interactive Brokers and Penson (or whatever its remnants are called now) are owned by and controlled by HFT market makers/proprietary traders. This creates very significant potential for conficts of interest. It's not a trend I like -- it could have very negative consequences for the equity markets as a whole, not to mention the clients themselves.
Wedbush does not offer PM for smaller accounts. Apex Clearing with the help of Peak6 will be a MUCH better run firm. That might mean cost increases to some firms. This should not effect most clients except those with HFT accounts paying REALLY low clearing fees.
They don't self clear Futures and FX. Last year they used Penson for their Futures business. Now they use Cargill.
If their in-house trading system generates a buy signal when their clients happen to be selling, they shouldn't take the signal?? You do know someone has to take the other side of your trade for you to get filled right?
Yes, thank god for Peak6. With apologies to Churchill, the Penson acquisition is perhaps the least cynical act in history.