Penson (PNSN) stock down on heavy volume

Discussion in 'Retail Brokers' started by m22au, May 12, 2011.

  1. There's always a market, just maybe not at the prices they want. I'll buy ALL bonds they have to offer at $1 each, but I'm guessing they're not selling....
     
    #31     May 13, 2011
  2. My guess (just a guess) is that AMTD will buy Penson very soon. Doubtful that it will be much of a premium to the current mark, but it's cheap and they won't have to build.

    Penson has always been sh*t, but they fill an important niche.
     
    #32     May 13, 2011
  3. luxor

    luxor

    I'm in at 3.13

    Expect it to climb back up to at least 6 soon, where they were last week.
     
    #33     May 13, 2011
  4. Magic8

    Magic8

    It also takes a long time to move money with these guys. It makes you wonder.

    Sometimes 5, 6 workign DAYS for an ACH transfer (up to a calendar week). What is the deal, really? What's going on?
     
    #34     May 13, 2011
  5. Did futures traders who used Refco lose any portion of their accounts?
     
    #35     May 13, 2011
  6. rmorse

    rmorse Sponsor

    Your money is safe in a futures account!

    e-CFR Data is current as of May 11, 2011

    Title 17: Commodity and Securities Exchanges
    PART 1—GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT
    Customers' Money, Securities, and Property

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    §_1.20___Customer funds to be segregated and separately accounted for.

    (a) All customer funds shall be separately accounted for and segregated as belonging to commodity or option customers. Such customer funds when deposited with any bank, trust company, clearing organization or another futures commission merchant shall be deposited under an account name which clearly identifies them as such and shows that they are segregated as required by the Act and this part. Each registrant shall obtain and retain in its files for the period provided in §1.31 a written acknowledgment from such bank, trust company, clearing organization, or futures commission merchant, that it was informed that the customer funds deposited therein are those of commodity or option customers and are being held in accordance with the provisions of the Act and this part: Provided, however, that an acknowledgment need not be obtained from a clearing organization that has adopted and submitted to the Commission rules that provide for the segregation as customer funds, in accordance with all relevant provisions of the Act and the rules and orders promulgated thereunder, of all funds held on behalf of customers. Under no circumstances shall any portion of customer funds be obligated to a clearing organization, any member of a contract market, a futures commission merchant, or any depository except to purchase, margin, guarantee, secure, transfer, adjust or settle trades, contracts or commodity option transactions of commodity or option customers. No person, including any clearing organization or any depository, that has received customer funds for deposit in a segregated account, as provided in this section, may hold, dispose of, or use any such funds as belonging to any person other than the option or commodity customers of the futures commission merchant which deposited such funds.

    (b) All customer funds received by a clearing organization from a member of the clearing organization to purchase, margin, guarantee, secure or settle the trades, contracts or commodity options of the clearing member's commodity or option customers and all money accruing to such commodity or option customers as the result of trades, contracts or commodity options so carried shall be separately accounted for and segregated as belonging to such commodity or option customers, and a clearing organization shall not hold, use or dispose of such customer funds except as belonging to such commodity or option customers. Such customer funds when deposited in a bank or trust company shall be deposited under an account name which clearly shows that they are the customer funds of the commodity or option customers of clearing members, segregated as required by the Act and these regulations. The clearing organization shall obtain and retain in its files for the period provided by §1.31 an acknowledgment from such bank or trust company that it was informed that the customer funds deposited therein are those of commodity or option customers of its clearing members and are being held in accordance with the provisions of the Act and these regulations.

    (c) Each futures commission merchant shall treat and deal with the customer funds of a commodity customer or of an option customer as belonging to such commodity or option customer. All customer funds shall be separately accounted for, and shall not be commingled with the money, securities or property of a futures commission merchant or of any other person, or be used to secure or guarantee the trades, contracts or commodity options, or to secure or extend the credit, of any person other than the one for whom the same are held: Provided, however, That customer funds treated as belonging to the commodity or option customers of a futures commission merchant may for convenience be commingled and deposited in the same account or accounts with any bank or trust company, with another person registered as a futures commission merchant, or with a clearing organization, and that such share thereof as in the normal course of business is necessary to purchase, margin, guarantee, secure, transfer, adjust, or settle the trades, contracts or commodity options of such commodity or option customers or resulting market positions, with the clearing organization or with any other person registered as a futures commission merchant, may be withdrawn and applied to such purposes, including the payment of premiums to option grantors, commissions, brokerage, interest, taxes, storage and other fees and charges, lawfully accruing in connection with such trades, contracts or commodity options: Provided, further, That customer funds may be invested in instruments described in §1.25.

    (Approved by the Office of Management and Budget under control numbers 3038–0007, and 3038–0024)
    [46 FR 54518, Nov. 3, 1981, as amended at 46 FR 63035, Dec. 30, 1981; 50 FR 36051, Sept. 5, 1985; 65 FR 78009, Dec. 13, 2000]

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    For questions or comments regarding e-CFR editorial content, features, or design, email ecfr@nara.gov.

    For questions concerning e-CFR programming and delivery issues, email webteam@gpo.gov.

    Section 508 / Accessibility

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    #36     May 13, 2011
  7. Hey - SIPC only works if you are actually HOLDING SECURITIES right?


    I mean, if you are closing out to cash each night, or just have a large cash balance (but still under 500k), SIPC doesn't help....AMIRIGHT?

    This situation is making me nervous.
     
    #37     May 13, 2011
  8. Catoosa

    Catoosa

    I do not expect PNSN to double any time soon and until Penson fixes a lot of their problems (I think Penson is a poorly managed company that has many known problems that their management has done nothing to fix and correct). I think Penson is a takeover target at these low prices and that could raise the price of PNSN if a takeover materialized.
     
    #38     May 13, 2011
  9. ryleg

    ryleg

    You aren't the only one.

    My understanding is that SIPC covers up to $250,000 in cash.

    The extra Penson coverage *allegedly* handles up to $2.15m or $600m across all accounts.

    See this:
    http://www.elitetrader.com/vb/attachment.php?s=&postid=3183374



     
    #39     May 13, 2011

  10. The extra coverage has a max and is not a per account guarantee, so while its nice, it doesn't address my discomfort.


    Thanks for the point on 250k in cash....Until the smoke clears i am going to reduce and make sure i am in SIPC limits.
     
    #40     May 13, 2011