I really can't say much more than I already have. Suggesting that the traders find a new home....and, I don't necessarily mean Bright Trading (many are of a different ilk).... but there are places to go, under solid Clearing firms.
Don
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Penson - What's this all about?
- Thread starter jackpearson
- Start date
I really can't say much more than I already have. Suggesting that the traders find a new home....and, I don't necessarily mean Bright Trading (many are of a different ilk).... but there are places to go, under solid Clearing firms.
Don
Quote from Grandluxe:
So what does this mean, this Apex spin off..do we have to submit new forms,etc?
I doubt they want to deal with a million or more clients paperwork. I'd guess the Penson paperwork transfers and any changes will be communicated to clients so that if they choose to leave for another clearing firm they can do so. My main curiousity is whether commissions will remain the same. Penson was struggling with lower trading volume so some small increase in costs wouldn't be totally unexpected.
Quote from Swan Noir:
This was far from "out of the blue". My guess is all of the ducks are in a row and, with normal glitches on some small percentage of accounts, this will go pretty well. There is likely to be increased stability -- the risk is largely gone.
I would hope so, for the industry. But not sure I can go along with "risk is largely gone" - just doesn't make sense, on several levels.
I can't, of course, get into details here...and seriously hope everyone is kept whole, and the the "good guys" (firms) survive.... just keep thinking that something's not right.
Don
An entity with the weight of Knight is unlikely to put itself in a position where, on the futures side, the segregated funds are at risk under their stewardship so that leaves the securities side where most of the retail accounts are fully covered by SPIC and many others are largely covered.
On both sides -- futures and securities -- it is possible that those smaller firms clearing through Penson will face increased costs or simply be shut out of the game. From that point of view you are correct Don; since higher rates or worse, fewer small firms, will be contrary to the public interest. Until the dust settles there does remain some risk for some of the players. And, since your ear is much closer to the ground, I simply assume that the details you can't speak of here give you more insight into the things that can go sideways.
On both sides -- futures and securities -- it is possible that those smaller firms clearing through Penson will face increased costs or simply be shut out of the game. From that point of view you are correct Don; since higher rates or worse, fewer small firms, will be contrary to the public interest. Until the dust settles there does remain some risk for some of the players. And, since your ear is much closer to the ground, I simply assume that the details you can't speak of here give you more insight into the things that can go sideways.
Quote from Don Bright:
I would hope so, for the industry. But not sure I can go along with "risk is largely gone" - just doesn't make sense, on several levels.
I can't, of course, get into details here...and seriously hope everyone is kept whole, and the the "good guys" (firms) survive.... just keep thinking that something's not right.
Don
Quote from Grandluxe:
So what does this mean, this Apex spin off..do we have to submit new forms,etc?
im with a Penson clearing broker now and was told that new forms wouldnt be needed and that no disruption of trading would occur. So far that is the case. i initially had a few concerns about the stability of penson but always thought they "were too big to fail" and would be bought like they were. looking forward to not having to think about that one anymore at all.
This is what I got in the mail this morning. I'm trading stocks through MB Trading, but now having second thoughts if I should transfer all of my funds to IB or someone more stable.
Anyone know about this APEX Clearing and PEAK6??? Don, what's your thought on this?
Anyone know about this APEX Clearing and PEAK6??? Don, what's your thought on this?
Dear Valued MBT Client,
On May 31, 2012, Penson Worldwide, Inc., and PEAK6 Investments, LP, announced the formation of Apex Clearing Corporation. Penson Worldwide is the parent of Penson Financial Services, Inc. (Penson) and, as you know, is MB Tradingâs clearing firm.
This letter is to provide you with very important information about changes to your account that occurred as a result of or in connection with this transition. In particular, MB Trading has changed its clearing firm from PFSI to Apex Clearing. Rest assured that the changes described below do not impact your relationship with MB Trading. There will be no impact to your account and you will continue to access your reports and do everything the same as you do now.
CHANGE IN CLEARING FIRM RELATIONSHIP:
As you know, your account was previously cleared through PFSI. We wish to inform you that effective June 5, 2012, your brokerage account converted, to and began clearing through, Apex Clearing.
Apex Clearing is providing clearance and settlement services, on a fully disclosed basis, for your account with your introducing firm, MB Trading. Apex Clearing is the broker-dealer previously known as Ridge Clearing & Outsourcing Solutions, Inc. and is a broker-dealer registered with the Securities and Exchange Commission and is a member of the Securities Investor Protection Corporation (SIPC), the Financial Industry Regulatory Authority, Inc. (FINRA) and applicable securities exchanges. Apex Clearingâs main office is currently located at 1700 Pacific Avenue, Ste. 1400, Dallas, Texas 75201. The telephone number is (888) 268-6220 and its website is www.apexclearing.com.
As a result of the transfer of your account, Apex Clearing is exercising its right to amend your Account Agreement (âCustomer Agreementâ), and any additional agreements you have entered into with your introducing broker-dealer, to reflect the transfer and to substitute Apex Clearing for PFSI. This means that your account agreements, like your account relationships, are now between you, your introducing broker-dealer, MB Trading and Apex Clearing; and that Apex Clearing has replaced PFSI with respect to the rights and obligations previously held by PFSI.
MAY REQUIRE ACTION
There is no need on your part to take action for this transfer to take effect and your brokerage account(s) have been automatically transferred to Apex Clearing without incurring any fees or charges.
...
Quote from JB3:
This is what I got in the mail this morning. I'm trading stocks through MB Trading, but now having second thoughts if I should transfer all of my funds to IB or someone more stable.
Anyone know about this APEX Clearing and PEAK6??? Don, what's your thought on this?
My thoughts? Well, I'm certainly glad that my friends who run MBT are all safe and sound, as their traders are as it appears.
I'm glad that Penson was able to find a "Strategic Partner" with some $$ - so as to make all this possible. Certainly a scary thing to have your Clearing Firm go out of business.
And, I'm sure that the changes in contracts are necessary - new entity and all. "Coulda been worse."
FWIW,
Don
edit: Found this, may be helpful
http://www.4-traders.com/PENSON-WOR...losing-of-Transfer-to-Apex-Clearing-14358229/
I received a postal letter on Tuesday (6/5) that my Penson futures account (through MBT) was being moved to Knight and if I wanted to do something else with my account to contact them before May 31st (the previous Thursday) .... lame considering they had my email address and could have contacted me that way.
So far no obvious changes to my MBT account
So far no obvious changes to my MBT account