Been asked to move to another FCM

[conduit]

Not sure about US laws and regulations on this but can't you attempt to transfer your existing positions between FCMs?

I trade STIRs, the spread markets are quite thick, but some butterflies or double butterflies not really. Of course I can cross the spread but I'd rather avoid this.
And unwinding in some cases is not possible as I am in liquidation mode and unwinding a position on a legged double butterfly involves expanding my position while legging out...

My only hope now is to find a new FCM and transfer my account quickly enough. I have also asked my account rep to get an extension (I have unwound a position already).

 

[ryker]

Yes this is what I am trying to do but I need approval from a risk manager before. I am in contact with 2 FCMs already. I should get an answer tomorrow hopefully.

 

[JackRab]

Is it a large FCM? Doesn't sound like so... Transfer would take time, 48 hours doesn't seem like enough time to setup a new account etc.
What about Interactive Brokers?

Can't you get a decent market for your positions? How big is it? How much money are we talking? For a big enough size, you should be able to get a quote and trade out of it... Especially bflys...

 

[ryker]

Well really the main problem for the unwind is that it is not possible in liquidation mode unless I trade outrights.
Liquidation would cost me around $1-2K I guess, not that much but given how hard it is to make money it is quite annoying.

 

[JackRab]

Giving away any money is always annoying... Do the legs move a lot? You could try to do the outrights and try to either break even or make some...

Hope you can find someone to do the transfer!

 

[ryker]

Outrights don't move that much, I'll do that if I can't find anyone quickly enough.

 

[CBC]

Define hegde? If there is a serious move like the CHF will you lose a tonne of cash? Is the risk of your trades exceed your account balance? Then they might have a reason for it. It all sounds quite strange tho.

As I'm sure you know in the finance world you will get a wide range of responses from everyone. One company wants this one company wants that. You just have to find the right one. AMP I recon are the most relaxed Broker / FCM in the businees.

I use CQG trader to. Quite a simple basic platform.

 

[J.P.]

I have been asked by my current FCM to move to another FCM

Which FCM is this? You should name them here. If you don't want to, then at least let us know if they are one of the larger or one of the smaller FCMs.

I think the main problem really is that I asked to switch platform last week (from CQG Trader to CTS) which resulted in a lot of emails back and forth

Really? That's why? We would really like to know the name of this broker.

Anyway, I hope the movement of your account goes smoothly.

JP

 

[newwurldmn]

No mention of whom the FCM is?

No follow up conversation with them to understand what "outside the parameters mean?"

 

[Sig]

I have not done anything illegal, never had a margin call and never breached any risk limits (it is not possible with the way the software is setup). And also never received any other warning letters.

I hold some large positions (on individual outrights) but everything is hedged and the volatility on my account is pretty low.

I think the main problem really is that I asked to switch platform last week (from CQG Trader to CTS) which resulted in a lot of emails back and forth Monday and Tuesday to get CTS setup correctly as the original setup was not tradable (I have never been rude and always very professional). I received the email from the Chief Risk Officer this morning asking to close my positions after asking for a tweak to make my account tradable...

They never did any due diligence and were quite happy to accept my account...

Anyway, thanks for the answers, I am in talks with risk department of 2 other FCMs and hoping to get approval as soon as possible.

I read the paper work and am not sure if they can proceed to liquidation as I do not breach any limits (unless they invent new limits...)

The 48 hour thing is clearly a jerk move, no excuses for that. It is a common business practice to "fire" customers who cost more than the revenue they bring in. It sounds like you may have run afoul of that. They devoted a significant amount of customer service dollars to you and anticipated this would continue going forward, so they determined that they were losing money on your account and were better off without you as a customer. While this is legit, the timing and BS excuse clearly weren't.