What happen if the clearing house goes bankrupt?

Posted by bbmak on March 24, 2012 (02:59PM)

What will happen to TK? Penson stock price at all time low. Can we still able to trade?
I know a lot of discount brokers are using Penson, Optionsfirst, Optionshouse, & Zecco.

Posted by OldFart on March 24, 2012 (04:07PM)


you do your own 1099 :-)

Posted by David Dusseault on March 24, 2012 (04:07PM)

bbmak,

There are two other strings addressing the Penson topic. Please have a read and if you have specific questions please contact me directly and I'll be happy to assist.

http://community.tradeking.com/forum/categories/general/topics/6907-looks-like-penson-is-having-problems-should-i-be-worried/forum_posts?page=1

http://community.tradeking.com/forum/categories/general/topics/8410-penson-bk-predicted/forum_posts

Thanks,
Dave Dusseault
TradeKing

Posted by bbmak on March 24, 2012 (04:50PM)

OldFart said:
you do your own 1099 :-)

 :D
This year, I almost do my own 1099. Penson does not include any option trades on the 1099, and I almost have to enter all my transactions manually. 

Posted by bbmak on March 24, 2012 (04:52PM)

David Dusseault said: bbmak,

There are two other strings addressing the Penson topic. Please have a read and if you have specific questions please contact me directly and I'll be happy to assist.

http://community.tradeking.com/forum/categories/general/topics/6907-looks-like-penson-is-having-problems-should-i-be-worried/forum_posts?page=1

http://community.tradeking.com/forum/categories/general/topics/8410-penson-bk-predicted/forum_posts

Thanks,
Dave Dusseault
TradeKing

 
Well, any backup plan if Penson goes busted? I know this will affect a lot of brokers.
if TK changes clearing house, is that mean that the commission rate can be changed too?

Posted by David Dusseault on March 24, 2012 (05:19PM)

bbmak,

Good questions.

You should know, our number one concern is continuity of business and protecting our Clients and our Firm.

As I mention in the other post I link to above, we are constantly reviewing our stable of partners to provide ongoing and great service at the same low pricing we set out with in 2005.

In case you need it, here is my post from the link above... 

Our first commitment is to you, our client, and we remain focused on retaining the strongest stable of partners to help us deliver the best and most reliable trading experience for you. 

We continually evaluate every partner relationship, and every option available to us, to ensure ongoing quality of service. 
  
We are aware our clearing partner, Penson Financial, recently announced a debt restructuring plan to reduce its current debt in exchange for new debt and equity securities. Penson believes this plan will significantly strengthen the company’s financial position and core business, thereby enhancing its ability to serve its customers. We have spoken with our partner and they have assured us that Penson’s U.S. subsidiary, Penson Financial Services, Inc., remains in strong financial position and, as of December 31, 2011, had more than five times the minimum requirement of regulatory capital.  

If you have further questions please don't hesitate to reach out to me directly.
 

Thanks,
Dave Dusseault
VP, Customer Service and Brokerage Operations
TradeKing

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