Thinkorswim - Knight (is anything at risk?)

Discussion in 'Trading' started by kcgoogler, Aug 3, 2012.

  1. Hello all,

    i received the following email from knight (which acquired penson recently - or atleast some accounts at pension) - which clears my thinkorswim futures/margin account.

    I know it mostly says dont worry.. but really is this something to be worried about?


    Important Announcement

    August 3, 2012

    Dear Our Valued Futures Clients,

    As the result of recent media focus on a Knight Capital Group (“Knight”) technology issue resulting in a substantial loss, Knight Futures Division management would like to take a moment to remind you about the safeguards in place to protect your funds and to inform you about our financial condition.

    Segregation of Customer Funds
    Regarding funds and collateral that you have sent us for your commodity futures trading accounts, we confirm that such funds are segregated and kept separate from the funds of Knight as required by the U.S. Commodity Futures Trading Commission (“CFTC”) Regulation 1.20. CFTC regulations also restrict the types of investments in which we are permitted to invest margin funds. We are now and have been in compliance with such regulations

    Where are your funds held?
    Your funds are held at futures clearinghouses, in U.S. treasury instruments and in cash and cash equivalents with regulated banks and carrying brokers. As stated above, all of your funds are segregated from funds of our own.

    Is Knight in Capital Compliance?
    As we stated publicly in our press release yesterday, Knight?s regulated businesses are in compliance with all required capital rules and regulations.

    Sincerely yours,

    Knight Futures Division Management
  2. DTrade88


    I'm with MBT and have received the exact same email from Knight about an hour ago (better late than never).

    MFG and PFG have set a bad precedent. No doubt. The only mitigating factor with Knight, in my opinion, is that the circumstances that caused liquidity issues at the firm are different...
  3. This is the same boilerplate nonsense that every futures firm in trouble spouts.

    Is any broker/clearing firm going to come out and say that they are NOT "in compliance with all required capital rules and regulations" ?

    Penson kept saying the same thing right up until they sold their futures clearing business to Knight.

    I fail to understand why anyone willingly keeps their money at any broker/clearing firm with obvious financial problems.

    Everything is OK until it isn't.