Sentinel Management Files for Chapter 11 Bankruptcy
- Thread starter ASusilovic
- Start date
from Bloomberg article:
"The firm's Prime Portfolio pooled account had 82 percent of its assets in floaters, or debt that pays floating-rate interest, as of June 30, according to the Web site. The weighted-average maturity of securities in the fund was 33 years, mostly in corporate securities. Only about 6 percent of assets were in overnight loans.
In contrast, Horizon Cash Management LLC, a $3.2 billion cash-management firm based in Chicago, has an average maturity across its separately managed accounts of 254 days. "
Does this make sense?
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJ192SL0ROwY&refer=home
"The firm's Prime Portfolio pooled account had 82 percent of its assets in floaters, or debt that pays floating-rate interest, as of June 30, according to the Web site. The weighted-average maturity of securities in the fund was 33 years, mostly in corporate securities. Only about 6 percent of assets were in overnight loans.
In contrast, Horizon Cash Management LLC, a $3.2 billion cash-management firm based in Chicago, has an average maturity across its separately managed accounts of 254 days. "
Does this make sense?
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJ192SL0ROwY&refer=home
Listen buttfuck, and this will be the last time I respond to your uninformed, foul-mouthed, cheerleading, posts.
...So therefore, whatever margin you are using is in effect insured by SIPC, because it is all held in the securities account until the end of the day. What is not insured that particular day is your profit, because it will be shifted by the clearinghouse to IB and then to your account, where it will be transferred into your insured account.
BEEEEPPPPP..... WRONG!!
http://sipc.com/how/covers.cfm
...
At IB the only funds exposed to potential risk of this type are your margin. Obviously you are always exposed to market risk.
BEEEEPPPP..... WRONG!!!
http://sipc.com/how/covers.cfm
You would think that some of the recent events would have shut your piehole somewhat, but evidently there is literally no end to the stupidity that your dumbazz is going to post. The only benefit from ultralow intraday margins is that it allows any particular trader to literally margin the crap out of his account. That is not a benefit to anyone else trading at the firm, and in fact, may be a major drawback if the firms safety programs are ineffective or insufficient. Because this is one of the ways that your capital could be exposed to risk.
You're a buttfuck that doesn't even "trade" futures. YOU KNOW NOTHING!!! Intraday margin amounts have no affect on the FCM finances. Only until the nightly exchange bookkeeping takes place, which is after the exchange-sanctioned trading hours for any given instrument, do margin requirements have any bearing on FCM capital requirements. And those requirements are based only on open positions at that time. Intraday trades that were opened and closed have no affect.
Go watch Cramer, get your swing stock picks for the rest of the month. Go to the oldtimers home to discuss the safety of your T-bills.
You have made it into the real elite... You are the first poster I have put on ignore. You clearly can't discuss futures intelligently or civilly. And Im tired of your IB evangelism. You and I can't be friends.
Goodbye to you
Osorico
LOL! My, my. When you lack anything intelligent to say, and can't keep your piehole shut, out come the epithets.
Now, let's go through this slowly since you evidently are having trouble comprehending. You hold your cash in a securities account called the Universal account. That account is insured by SIPC.
Next, you daytrade some futures. The cash in your Universal account is not shifted to the clearinghouse because they are daytrades. Therefore, all of your cash in still covered by SIPC. IF you made a profit, your profit is later shifted back into your Universal account. But before it is shifted, it will not be covered by SIPC because it is not yet in the Universal account.
Finally, you carry a futures position overnight. AT NIGHT your cash to meet the overnight margin requirement is shifted from the Universal account to the futures account, where it is no longer insured by SIPC.
Finally, I've been trading index futures for as long as they've been around. I began with the Value Line futures, later traded the SP futures when they started, and have traded all the others as they came about, such as the Major Market Index futures way back when. I traded my first futures contract back in early 1969, sugar, and have traded most of the other major commodity contracts since then.
My guess is I've been trading for longer than you are old. I say this because only the truly immature could think that putting someone on "ignore" makes a damn bit of difference. LOL! See you around sonny.
By the way, go read your links to SIPC, you might see where your error was.
OldTrader
OT is right btw......
You're a buttfuck that doesn't even "trade" futures. YOU KNOW NOTHING!!! Intraday margin amounts have no affect on the FCM finances. Only until the nightly exchange bookkeeping takes place, which is after the exchange-sanctioned trading hours for any given instrument, do margin requirements have any bearing on FCM capital requirements. And those requirements are based only on open positions at that time. Intraday trades that were opened and closed have no affect.
You have made it into the real elite... You are the first poster I have put on ignore. You clearly can't discuss futures intelligently or civilly. And Im tired of your IB evangelism. You and I can't be friends.
You are a super buttf*ck.......intraday futures margins are scooped twice a day in normal markets and subject to immediate margins call in high volatility.
The SIPC has nothing to do with futures guaranties. The exchange clearing company matches trades and provides the insurance against default.
...And the threat of ignore to a member is akin to a pouting child...
Please read and learn:
CHICAGO, Aug. 14 /PRNewswire-FirstCall/ -- CME Group today provided the
following comment on Sentinel Management Group, Inc. and its determination
to cease acceptance of new investment funds or redemptions. CME Group also
confirmed that its clearing member firms have continued to meet all of
their obligations to CME Clearing and remain in good standing. Sentinel has
notified the Commodity Futures Trading Commission (CFTC) that it will not
accept additional funds for investment and that it will not make
redemptions at this time.
Sentinel is not a clearing member of CME Group or any other exchange.
Sentinel provides investment advisory and investment services to
institutional and corporate clients, including a limited number of CME
clearing member firms. Total investments under management by Sentinel are
approximately $1.5 billion. None of these funds are on deposit with CME
Clearing to support performance bond or collateral requirements. Sentinel
is registered with the Securities and Exchange Commission (SEC) pursuant to
the Investment Advisors Act of 1940, and is also registered with the CFTC
and the National Futures Association (NFA) as a non-clearing futures
commission merchant (FCM).
As of today, CME Group holds approximately $53.4 billion in performance
bond collateral, including approximately $6.5 billion of excess collateral.
CME Group provides a marketplace where futures and options on futures
contracts are traded. CME Clearing clears, settles and guarantees all
matched transactions in CME Group contracts. The financial integrity of CME
Clearing is the foremost consideration of the CME Group's Management, Board
of Directors and CME Clearing Risk Committee. CME Group is vitally aware of
its role in international financial markets and believes that its financial
safeguard system, designed for the benefit and protection of both clearing
members and their customers, is second to none. CME Group's financial
safeguard systems and auditing systems have proved absolutely effective for
over 125 years to protect customers and other members of its clearing house
against any loss.
CME Clearing's risk management and financial surveillance techniques
are comprehensive and specifically designed to:
-- Prevent the accumulation of losses through CME Clearing's twice daily
mark-to-market and settlement variation payment process. All payments
to and collections from clearing members are made in "same-day" funds.
-- Ensure that sufficient resources are available to cover future
obligations through the payment of both minimum initial and
maintenance performance bonds and with high quality collateral
specified by CME Clearing.
-- Result in the prompt detection of financial and operational weaknesses
affecting any CME Group clearing member firm.
-- Allow swift and appropriate action to be taken to rectify and
financial problems and protect the clearing system.
You have made it into the real elite... You are the first poster I have put on ignore. You clearly can't discuss futures intelligently or civilly. And Im tired of your IB evangelism. You and I can't be friends.
You are a super buttf*ck.......intraday futures margins are scooped twice a day in normal markets and subject to immediate margins call in high volatility.
The SIPC has nothing to do with futures guaranties. The exchange clearing company matches trades and provides the insurance against default.
...And the threat of ignore to a member is akin to a pouting child...
Please read and learn:
CHICAGO, Aug. 14 /PRNewswire-FirstCall/ -- CME Group today provided the
following comment on Sentinel Management Group, Inc. and its determination
to cease acceptance of new investment funds or redemptions. CME Group also
confirmed that its clearing member firms have continued to meet all of
their obligations to CME Clearing and remain in good standing. Sentinel has
notified the Commodity Futures Trading Commission (CFTC) that it will not
accept additional funds for investment and that it will not make
redemptions at this time.
Sentinel is not a clearing member of CME Group or any other exchange.
Sentinel provides investment advisory and investment services to
institutional and corporate clients, including a limited number of CME
clearing member firms. Total investments under management by Sentinel are
approximately $1.5 billion. None of these funds are on deposit with CME
Clearing to support performance bond or collateral requirements. Sentinel
is registered with the Securities and Exchange Commission (SEC) pursuant to
the Investment Advisors Act of 1940, and is also registered with the CFTC
and the National Futures Association (NFA) as a non-clearing futures
commission merchant (FCM).
As of today, CME Group holds approximately $53.4 billion in performance
bond collateral, including approximately $6.5 billion of excess collateral.
CME Group provides a marketplace where futures and options on futures
contracts are traded. CME Clearing clears, settles and guarantees all
matched transactions in CME Group contracts. The financial integrity of CME
Clearing is the foremost consideration of the CME Group's Management, Board
of Directors and CME Clearing Risk Committee. CME Group is vitally aware of
its role in international financial markets and believes that its financial
safeguard system, designed for the benefit and protection of both clearing
members and their customers, is second to none. CME Group's financial
safeguard systems and auditing systems have proved absolutely effective for
over 125 years to protect customers and other members of its clearing house
against any loss.
CME Clearing's risk management and financial surveillance techniques
are comprehensive and specifically designed to:
-- Prevent the accumulation of losses through CME Clearing's twice daily
mark-to-market and settlement variation payment process. All payments
to and collections from clearing members are made in "same-day" funds.
-- Ensure that sufficient resources are available to cover future
obligations through the payment of both minimum initial and
maintenance performance bonds and with high quality collateral
specified by CME Clearing.
-- Result in the prompt detection of financial and operational weaknesses
affecting any CME Group clearing member firm.
-- Allow swift and appropriate action to be taken to rectify and
financial problems and protect the clearing system.
I thought you all should see this-I am happy to report I should have my money tomorrow, this came directly from Jay aka Jack E. Earnest, head of Velocity. He is a stand up guy. Thanks Velocity.
Dear Customer,
We have received your wire transfer request, and have already processed it so that your
funds will be released to you first thing Monday morning. Due to the liquidity issues that
have been discussed recently in the press, we want to reassure you of Velocityâs
continued health and financial stability. As always, we will provide our customers with
ready access to their funds.
For the coming week, Velocity is offering free wire transfers to all of its customers. Your
recent request of course qualifies, and will be done free of charge.
We appreciate your choosing Velocity for your futures trading business.
Sincerely,
VELOCITY MANAGEMENT
Dear Customer,
We have received your wire transfer request, and have already processed it so that your
funds will be released to you first thing Monday morning. Due to the liquidity issues that
have been discussed recently in the press, we want to reassure you of Velocityâs
continued health and financial stability. As always, we will provide our customers with
ready access to their funds.
For the coming week, Velocity is offering free wire transfers to all of its customers. Your
recent request of course qualifies, and will be done free of charge.
We appreciate your choosing Velocity for your futures trading business.
Sincerely,
VELOCITY MANAGEMENT