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>
>
> there was a previous discussion here about funding and size /
> capaitalization of brokerage companies - TOP 40 or so in FUTURES mag.
>
> In dealing with smaller companies (i.e. not in top 40) I do believe
> in putting MOST of the funds into TBILLs - which can be used as
> margin anyway - will make them safe and in case of bankruptcy will
> be segregated and might be blocked for months, but better blocked
> than down the drain..........
>
> Is this right ?
> Does that help me in case something goes wrong ?
> or better, different method, please ?
>
> thanks
> rgds hans
Hans,
It really should not make any difference. The Customer funds are
segregated, ie there is a firewall between them and the companies
capital. There are a bunch of early warning alarms set off if the
companies capital should begin to slip.
If a firm gets tight on capital, you will see them start sending out
account balances (which Stotler did) or they immediately cut a deal to
transfer the accounts to a healthy FCM.
KJL
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