What happens to a Broker if the Clearing Firm goes Bankrupt?

Discussion in 'Retail Brokers' started by Arjun1, Dec 10, 2008.

  1. Arjun1


    If a clearing firm goes bankrupt, what happens to the broker and the clients of the broker?

    BTW, any chance that Penson goes under? They are down 80% from the highs.
  2. cstfx


  3. if bsc and leh can go under anyone can go under. penson clears for 300 brokers and most of the non big firms like think or swim and das trader.outside getting stiffed on a $25 mil margin call in canada penson has actually done well. clearing should really be a non dangerous business.that said you have your sipc ins just like any other firm
  4. csfx north american was a miniscule clearing house. i bet penson has 2-4 mil accounts and no question the accounts would be gobbled up fast by other clearing firms. but reading the claim forms is scary. why are they asking you to tell them what you own? why don't they have access to the last days statements to determine that?ALSO IF I'M MAKING NO CREDIT INTEREST I'LL BE DAMMED IF THEY RISK 1 CENT OF MY MONEY