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Another completely different approach that I have thought of is: instead of requesting a wire transfer in the first place, fly to Chicago and pick up a check on the spot, and immediately take it to *their* bank and have it stamped "accepted"/certified. At that point the money is withdrawn from...

Check the margin agreement with your own stock broker. It will have the same provision.

Not necessarily at all. All it means in the normal case is financing of margin loans using a lender. I think that every stock broker does this and that is an essential and normal part of stock margining. How else is the broker going to finance margin loans other than by pledging the...

You're welcome and that's a good article too although I think it mostly just a rehash of the Reuters article which was wrong in naming IB, as we found out, and probably in other ways too. IB has made clear in their later reply that they are not using any of those techniques.

You need to read the later IB post to this thread.

It looks as if, despite the Reuters article, the normal meaning of re-hypothecation is just hypothecation involving a third party lender as well as the customer and the broker. So they do amount to essentially the same thing in the way IB or most brokers operate.

So what's the best thing to do in the future if you wire money out of your account of a failing broker and you are afraid they might try to reverse it? The best I can think of is wire it away a second time immediately to one's account at Interactive Brokers. Hopefully they would not be...

That is correct. CTS T4 is licensed via many other brokers and clearing firms as well but I find some advantages in having Cunningham themselves as the broker and clearing firm. Since they do not want to compete with the other brokers and clearing firms they license T4 to, they do not...

Market value to me in this case means the price available to the seller in the market. These bonds are traded. I do not see that the property is distressed (i.e. damaged or impaired). But let's not quibble over definitions. The question is whether the trustee is making an adequate...

http://online.wsj.com/article_email/SB10001424052970204319004577086652040716704-lMyQjAxMTAxMDAwOTEwNDkyWj.html?mod=wsj_share_email_bot "Earlier this year, his firm moved a chunk of its holdings into safe, liquid investments, giving Mr. Soros the ability to write the approximately $2 billion...

It is very interesting that the account agreements of so many firms contains identical language referring to re-hypothecation. This suggests that the language comes from a common source. Could this source be whoever (e.g. a major investment bank) is providing the hypothecation services to...

The Crossland Agreement looks fine too.........this applies also to DeepDiscountFutures which clears through Crossland...

I cannot find any reference to hypothecate or pledge in the account agreement for Cunningham Commodities/ Cunningham Futures Clearing. It is a very simple account agreement and does not have anything like that at all.

Thanks - that is very good to know. He still likely has to check with other managers (and probably the president of the company and maybe lawyers too) on such a specialized and complicated topic. I imagine that IB will be working up a detailed response to the Reuters article since it names...

It is not at all realistic to expect def to be an instantaneous expert, after U.S. business hours, on until-today obscure issues of re-hypothecation business practices and contract language.. Obviously he needs to check with senior management first before going into detail on that.

"Re-hypothecation occurs when banks or broker-dealers re-use the collateral posted by clients such as hedge funds to back the broker's own trades and borrowings." That definition may be inaccurate. http://financial-dictionary.thefreedictionary.com/Rehypothecate says: rehypothecate...

Unfortunately as far as I can see the majority of brokers do not use real-time margining that extends to futures option positions. Does TT X-Trader?, CQG?

MF Global only had to keep on deposit with the CME the minimum maintenance margin for actual trades that were open. The many people who were largely in cash in their MF Global accounts would not give rise to much/any deposit at CME in respect of their excess cash balances.

I would suggest checking with the exchange in question whether they believe their product is cleared for trading in the U.S. Probably they market their products to brokers, and brokers will not offer them until the exchange assures them that they have received all U.S. regulatory clearances...

http://www.cftc.gov/international/foreignmarketsandproducts/foreignproducts has some information and links to searches that show what has been approved and what is pending. I also do not want to be limited to a crippled subset of Asian (and even Canadian) investment and trading vehicles...