White Pacific clearing

Discussion in 'Retail Brokers' started by mike s, Sep 5, 2002.

  1. mike s

    mike s

    I just received word today that PointDirex is changing their clearing from Southwest to White Pacific.

    I did a search on ET and didn't find any info on them.

    Anybody have any experience with White Pacific?

  2. mrbud


    I was wondering the same thing. I never heard of them either.

    I hope they have a decent short list.

    I would hope their reports would be an improvement over the trade reports that PD offers.
  3. GHJ


    Whoever they are, they are not an established clearing firm. They aren't even listed in Clearing Quarterly's records of correspondent clearers. Be very very careful when considering firms that use bottom-tier clearing firms. These clearers just don't have the capital to take exposure hits (a good recent example of this is MJK Clearing). Couple their small capital bases with their tendency to engage in riskier business to generate revenue, and you've got the potential for a bad situation. There are numerous solid clearing firms to choose from (SLK, Pax, Penson, etc.). Why choose a second rate firm like CCS, White Pacific, or many of the underfunded self-clearing firms out there? Safety of capital and firm stability should be paramount to saving .001 per share or so.
  4. Hubert


    any thing would be better than southwest thought there
    stament were a nigh mare to fiq out
  5. mike s

    mike s

    Thanks for your reply.

    I've since learned that White Pacific isn't the clearing (as I was first informed by PointDirex) but there is some sort of deal between them and PointDirex. The clearing, I believe, is Computer Clearing.

    I'm bailing and closing my account with PointDirex/White Pacific.

    So, here I am shopping again. I don't really want to deal with the IB hassles and I prefer not to get licensed for a "prop" deal. Looks like I'll be sloggin' through the ET posts on "who has the best deal."
  6. Hubert


    choice trade
  7. Hubert


  8. I have a question re: SIPC. If a broker is a member of SIPC and it goes down, I can get my money back within 3-4 months. But what if the clearing firm goes down? Are clearing firms automatically covered by SIPC? Are they required to be members of SIPC? Do I have to find a broker that is SIPC insured as well as a clearing firm that is SIPC insured.

    Thanks all.
  9. richk


    I have found White Pacific as SIPC member, so their accounts are protected.
  10. richk


    National Securities Clearing Corporation (www.nscc.com).

    So I think White Pacific looks OK.
    #10     Sep 8, 2002