If a broker get bankrupt?

rijayasooriya · 21 Re: If a broker get bankrupt? Sat Dec 17, 2011 11:05 pm

rijayasooriya

Senior Vice President - Equity Analytics

Posts : 1827
Join date : 2011-05-25

@kas wrote:

@rijayasooriya wrote:

@kas wrote:
Their licence will be suspended and shares would be transferred to another broker house.

What about the cash ?

What cash you mean?

The amount we have not invested in (meaning available cash for withdrawal in brokers account.)

Marketinvest · 22 Re: If a broker get bankrupt? Sat Dec 17, 2011 11:50 pm

Marketinvest

Senior Manager - Equity Analytics

Posts : 336
Join date : 2011-07-02

@rijayasooriya wrote:

@kas wrote:

@rijayasooriya wrote:

@kas wrote:
Their licence will be suspended and shares would be transferred to another broker house.

What about the cash ?

What cash you mean?

The amount we have not invested in (meaning available cash for withdrawal in brokers account.)

ha will have to forget about the uninvested moneys because these firms are private limited companies and if the file for bankruptcy the clearence will be according to debt privilages and also it will only be paid on a propotianate basis. The whole cash cannot be recovered. Further it will be a very slow procedure can take many years to complete. For instance leeman brothers bankruptcy is still going on and settlements are stil being made. These are some payments that will be paid on 2015 -2014 period also. Its is a real bad slow procedure...

kas · 23 Re: If a broker get bankrupt? Sun Dec 18, 2011 12:53 am

kas

Manager - Equity Analytics

Posts : 129
Join date : 2011-06-05

@Marketinvest wrote:

@rijayasooriya wrote:

@kas wrote:

@rijayasooriya wrote:

@kas wrote:
Their licence will be suspended and shares would be transferred to another broker house.

What about the cash ?

What cash you mean?

The amount we have not invested in (meaning available cash for withdrawal in brokers account.)

ha will have to forget about the uninvested moneys because these firms are private limited companies and if the file for bankruptcy the clearence will be according to debt privilages and also it will only be paid on a propotianate basis. The whole cash cannot be recovered. Further it will be a very slow procedure can take many years to complete. For instance leeman brothers bankruptcy is still going on and settlements are stil being made. These are some payments that will be paid on 2015 -2014 period also. Its is a real bad slow procedure...

It's like a dissolution of a company I think,Thanks for the info "Marketinvest"

hasi17 · 24 Re: If a broker get bankrupt? Sun Dec 18, 2011 8:57 am

hasi17

Equity Analytic

Posts : 49
Join date : 2011-12-09

This is good read about some hows and whys of the delivery vs. payment systems.
http://www.jksb.keells.lk/newjksb/downloads%5CIntrocuction%20of%20Central%20Counter%20Party.pdf

rijayasooriya · 25 Re: If a broker get bankrupt? Sun Dec 18, 2011 12:16 pm

rijayasooriya

Senior Vice President - Equity Analytics

Posts : 1827
Join date : 2011-05-25

@Marketinvest wrote:

@rijayasooriya wrote:

@kas wrote:

@rijayasooriya wrote:

@kas wrote:
Their licence will be suspended and shares would be transferred to another broker house.

What about the cash ?

What cash you mean?

The amount we have not invested in (meaning available cash for withdrawal in brokers account.)

ha will have to forget about the uninvested moneys because these firms are private limited companies and if the file for bankruptcy the clearence will be according to debt privilages and also it will only be paid on a propotianate basis. The whole cash cannot be recovered. Further it will be a very slow procedure can take many years to complete. For instance leeman brothers bankruptcy is still going on and settlements are stil being made. These are some payments that will be paid on 2015 -2014 period also. Its is a real bad slow procedure...

Thanks Marketinvest.

Kumar · 26 Re: If a broker get bankrupt? Sun Dec 18, 2011 1:24 pm

Kumar

Senior Vice President - Equity Analytics

Posts : 1636
Equity Stars : 5701
Reputation : 232
Join date : 2011-09-27

The following link will help to understand the issue more. (may be)
http://www.lawnet.lk/docs/articles/sri_lankan/HTML/CV10.html

chamith · 27 Re: If a broker get bankrupt? Sun Dec 18, 2011 1:48 pm

chamith

Assistant Vice President - Equity Analytics

Posts : 827
Equity Stars : 4682
Reputation : 76
Join date : 2011-01-31
Location : England

@hasi17 wrote:This is good read about some hows and whys of the delivery vs. payment systems.
http://www.jksb.keells.lk/newjksb/downloads%5CIntrocuction%20of%20Central%20Counter%20Party.pdf

Wow thts call proper info...
Seems like the liquid asset / margin required by the broker to make a trade will significantly reduce. Brokers will have more margins in their hand than now.

Sponsored content

Latest topics

If a broker get bankrupt?

21 Re: If a broker get bankrupt? Sat Dec 17, 2011 11:05 pm

rijayasooriya

22 Re: If a broker get bankrupt? Sat Dec 17, 2011 11:50 pm

Marketinvest

23 Re: If a broker get bankrupt? Sun Dec 18, 2011 12:53 am

kas

24 Re: If a broker get bankrupt? Sun Dec 18, 2011 8:57 am

hasi17

25 Re: If a broker get bankrupt? Sun Dec 18, 2011 12:16 pm

rijayasooriya

26 Re: If a broker get bankrupt? Sun Dec 18, 2011 1:24 pm

Kumar

27 Re: If a broker get bankrupt? Sun Dec 18, 2011 1:48 pm

chamith

28 Re: If a broker get bankrupt?

Sponsored content