Brokerage settlements
3 responses | 1 like
Started by MarkB - March 8, 2022, 12:32 a.m.

Received an email from my broker last week, that certain trades might be delayed in final settlements. With the current market volitility, I can only take this as meaning that they may not be finding enough money to settle trades properly. No doubt that some traders who have taken the other side of a skyrocketing market, have been wiped out.  So I take this as an indication that I need to reduce my account size. One must, above all, protect against losses. Both in the market, as well as in your brokerage.


Thoughts?

Comments
By joj - March 8, 2022, 5:50 a.m.
Like Reply

Excellent question Mark.

With so many goods and services these days one can just go on the internet and get consumer reviews.  How can one know if your brokerage company is managing margin calls and risks properly?  Particularly, how much capital is behind short premium on options.  In the '87 stock market crash the S&P options pit completely emptied out of locals.  They all blew out and implied vol went to 400%.  One guy left was making markets with institutional money behind him.

By bcb - March 8, 2022, 10:33 a.m.
Like Reply

I clear thru Wedbush and saw that email last week. For myself and clients each day eq run and positions are correct and no problems with monies. Don't know except they had a back up of matching buy sells?? I guess??

By MarkB - March 8, 2022, 12:11 p.m.
Like Reply

bcb We clear through the same broker. Nonetheless, I've moved money out of my account, just to be on the safe side. I can always put back.