I really can't say much more than I already have. Suggesting that the traders find a new home....and, I don't necessarily mean Bright Trading (many are of a different ilk).... but there are places to go, under solid Clearing firms. Don
I doubt they want to deal with a million or more clients paperwork. I'd guess the Penson paperwork transfers and any changes will be communicated to clients so that if they choose to leave for another clearing firm they can do so. My main curiousity is whether commissions will remain the same. Penson was struggling with lower trading volume so some small increase in costs wouldn't be totally unexpected.
This was far from "out of the blue". My guess is all of the ducks are in a row and, with normal glitches on some small percentage of accounts, this will go pretty well. There is likely to be increased stability -- the risk is largely gone.
I would hope so, for the industry. But not sure I can go along with "risk is largely gone" - just doesn't make sense, on several levels. I can't, of course, get into details here...and seriously hope everyone is kept whole, and the the "good guys" (firms) survive.... just keep thinking that something's not right. Don
An entity with the weight of Knight is unlikely to put itself in a position where, on the futures side, the segregated funds are at risk under their stewardship so that leaves the securities side where most of the retail accounts are fully covered by SPIC and many others are largely covered. On both sides -- futures and securities -- it is possible that those smaller firms clearing through Penson will face increased costs or simply be shut out of the game. From that point of view you are correct Don; since higher rates or worse, fewer small firms, will be contrary to the public interest. Until the dust settles there does remain some risk for some of the players. And, since your ear is much closer to the ground, I simply assume that the details you can't speak of here give you more insight into the things that can go sideways.
im with a Penson clearing broker now and was told that new forms wouldnt be needed and that no disruption of trading would occur. So far that is the case. i initially had a few concerns about the stability of penson but always thought they "were too big to fail" and would be bought like they were. looking forward to not having to think about that one anymore at all.
This is what I got in the mail this morning. I'm trading stocks through MB Trading, but now having second thoughts if I should transfer all of my funds to IB or someone more stable. Anyone know about this APEX Clearing and PEAK6??? Don, what's your thought on this?
My thoughts? Well, I'm certainly glad that my friends who run MBT are all safe and sound, as their traders are as it appears. I'm glad that Penson was able to find a "Strategic Partner" with some $$ - so as to make all this possible. Certainly a scary thing to have your Clearing Firm go out of business. And, I'm sure that the changes in contracts are necessary - new entity and all. "Coulda been worse." FWIW, Don edit: Found this, may be helpful http://www.4-traders.com/PENSON-WOR...losing-of-Transfer-to-Apex-Clearing-14358229/
I received a postal letter on Tuesday (6/5) that my Penson futures account (through MBT) was being moved to Knight and if I wanted to do something else with my account to contact them before May 31st (the previous Thursday) .... lame considering they had my email address and could have contacted me that way. So far no obvious changes to my MBT account