Penson - What's this all about?

Quote from textrader4:

The vultures are circling....who gets the equity clearing??
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Whomever pays the most money. And whomever pays the biggest kickback.
 
More likely, as in the case of so many prop trading firms... we just let the traders decide where to go.

There is really nothing to "buy" - just people that need a new home.

I have no horse in this race, regarding clearing,since we don't self clear, we clear with Goldman of course.

That being said, again, it's the traders simply looking for a new home that I am concerned with.

I hope they (the traders) take it upon themselves long before this turns into yet another big mess for the industry.

Don
 
Quote from Don Bright:


I hope they (the traders) take it upon themselves long before this turns into yet another big mess for the industry.

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Don,

How do you see the Penson issue being resolved? cleanly via a purchase by another entity? or messy such as SIPC? or, do you think Penson will continue forward with the equity clearing.

Thanks & I've enjoyed your posts over the years on ET. Thanks for taking your time posting here.
 
Quote from high99:

So a happy ending for futures traders. :p
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I certainly wouldn't call it a happy ending, as Knight is primarily a trading firm, and one that relies on sneaky tactics (e.g. payment-for-order-flow deals for retail orders) to make much of its income.

So if you're a short-term trader, Knight has the potential to be your competitor (and one with huge informational advantages), as well as your broker. Not a situation I'd be too happy about. :eek:
 
it will be a sad day if penson disappears. penson makes it possible for many small firms to exist. without it the industry will become more concentrated and the barrier to entry will rise significantly. it will be a bane to small investors and to small props
 
Quote from Occam:

I certainly wouldn't call it a happy ending, as Knight is primarily a trading firm, and one that relies on sneaky tactics (e.g. payment-for-order-flow deals for retail orders) to make much of its income.

So if you're a short-term trader, Knight has the potential to be your competitor (and one with huge informational advantages), as well as your broker. Not a situation I'd be too happy about. :eek:
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Knight is not my broker. MB Trading is my broker. ES, YM, etc. are traded electronically via CME and CBOT. Knight is picking up the clearing for Futures. Penson will continue to clear for stocks. As of now.
 
Update. Looks like they have spun that off as well. APEX is the newly formed company for clearing stocks. Things move fast.
 
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