Penson

Def, how much of the IBG consolidated capital figure is from the brokerage business and how much from other businesses? Thanks in advance.

 

you're def minimizing you're risk in case shtf by keeping the absolute min amount in the account so that's good. there are a few quality brokers/clearing firms for futures besides ib. look at advantage futures. they're a relatively smaller firm but they take risk management seriously (none of this $500 per car margin nonsense) and have great support and rock bottom rates (you prob can't get lower rates unless you have an exchange membership).

point is as another poster rightly pointed out, there ARE other brokers/clearing firms out there - you just have to look and do the research (well read the research others have done).

at this point we're getting to the whole "lead a horse to water" thing. we've (the et community) has told you the problem w/ pnsn, we've given you the solution, it's up to you to act.

again, i'm not trying to talk down to you just trying to help. but the good news is you're only keeping a small amount there - not like some hedge funds that used LEH as their prime and lost everything b/c it was tied up for years.

 

Look at line 50 and 102. http://www.cftc.gov/ucm/groups/public/@financialdataforfcms/documents/file/fcmdata0212.pdf

 

See also this discussion of IBG, LLC's capital from the IBKR Q1 2012 earnings call transcript.

My point is that when IB reports consolidated capital, it's important to remember that they are referring to IBG, LLC, the holding company of all businesses--brokerage, prop trading, market-making, and others.

from: http://seekingalpha.com/article/512...2-results-earnings-call-transcript?part=qanda

Richard Repetto – Sandler O'Neill & Partners L.P.: Okay. And then the very last question is just on your capital, Thomas and Paul. Could you give out the split between, I know it’s around I think $2.8 billion at the market maker, but could you give sort of how you segment out your capital between the broker and the market-maker?

Paul J. Brody: You’re close. Maybe the market-making is a little bit higher, but the brokerage has about...

Thomas Peterffy: It’s 1.7 and change and 2.9 and change.

 

Where ever you choose to trade securities:

If you would like added protection in a bankruptcy, consider funding your account with 3 month T-bills. Google for," A Joint Report of the SEC and the CFTC on Harmonization of Regulation.” If you go to page 33 second paragraph, it discusses a broker dealer’s obligation with regard to securities fully paid for. Securities in a brokerage account are safer than cash. They are easier to track and transfer.

The T-Bill is marginable at 95%. If your broker were to go bankrupt, SIPC normally transfers securities then looks to make up the missing cash. This would provide you with an added layer of protection. Using t-bills to fund your account will only reduce your buying power by a small percenge.

Bob

 

Just keep minimums in mind. $1 mil at IB, for example.

See top page of:

http://206.106.137.34/MktServices/s...inRequirements/fundamentals.php&lm=1185391240

 

That's a great tip, thanks for that Bob.

 

The one question it leaves is that it says it's $1M if doing a T-bill xfer into the account. It would seem to suggest to me that one could purchase T-bills using the cash already in their account, then use those as collateral even if below the $1M level.

Def, any insight into this?

 

That min. apears to be for T-bill transfers to meet a margin call. If you have an account there of $250k, I'm sure you can buy a T-bill for $250k. If you're a long side trader, you'll have to pay margin interest on all your trades.

 

the whole idea is flawed. with exceptions, you would be paying 4 to 8% interest on your long stock positions.