SVS Securities - shut down?

masonic

johnburman said:

"So lets keep the information coming isn't capitalism and freedom about choice ." - I agree.
But there is a baseline: how secure are your holdings if -and it is a big if - the company goes bust.  My feeling is that the FCA have said that they *expect* a few regulated companies to go bust.  Thesy do not see their job as preventing this, but as to protect investors.  So like SVS, investors will get their shares/funds back under the FSCS limit eventually  

Do other overseas regulators see this as their function?  Do they, as happened with building societies here, dot allow them to go bust but to be taken over/merge with a stronger company?  What I am saying is is my fear of dealing with an overseas regulator misplaced?

It seems on this subject we are aligned. In most cases, the firms in question have a UK subsidiary authorised by the FCA, but I've seen examples of contracts containing a governing law clause and/or jurisdiction clause, which could make things trickier in the event of a dispute. Then there is the compensation scheme, which, if not FSCS, will be governed by another country's laws.

Strange things happen in unusual times. There is precedent for a country to force through emergency legislation prioritising compensation claims of citizens vs foreigners, and the ensuing dispute proved a government is accountable to its citizens and will always put them first or face their wrath.

So if you run into some kind of dispute, experience a breach of contract, or the firm is unable to meet its obligations to you, you are plunged into an unfamiliar world where you may not understand the laws, probably won't be able to get any useful help from the usual channels, and can't hold the ultimate powers that be to account.

masonic

manorhouse said:

Hi Thugelmir.
This is the message i got this morning ( VAST) for you further info.
I hold so i could sell of course. ( with this one sometimes you can buy ( if someone else sells i guess ) ( seems here they have an overall position ))
But with others i hold ( UJO & ALBA ) you get a message they have taken off platform altogether , but you can hold and sell. 
"Unfortunately this product is not available for trading. This could be due to regulatory reasons, your current profile or an internal decision."
Hopefully masonic can explain there reason ?
I find it annoying as i am taking the risk not them ??

I'd guess there aren't enough people trading it internally and on their obscure exchange, so they'd have to spend too much on LSE market orders to support it being traded by the few who want to.

Thrugelmir

manorhouse said:

Hi Thugelmir.
This is the message i got this morning ( VAST) for you further info.
I hold so i could sell of course. ( with this one sometimes you can buy ( if someone else sells i guess ) ( seems here they have an overall position ))
But with others i hold ( UJO & ALBA ) you get a message they have taken off platform altogether , but you can hold and sell. 
"Unfortunately this product is not available for trading. This could be due to regulatory reasons, your current profile or an internal decision."
Hopefully masonic can explain there reason ?
I find it annoying as i am taking the risk not them ??

All 3 are illiquid thinly traded stocks with low market capitlisations. Not shares that Deigro will make any money from by trading for you. As they've grown in customer base size, they can afford to be more selective. 

manorhouse

Thanks for you comments so you both think Deigro would rather you didn't have lots of AIM.
The make money remark has nothing to do with there trading commission i take it.
They could of just not included any AIM shares, it is only a small potion of AIM i have trouble with i had thought it was due to risk level of those shares .
Would UJO , ALBA ,and SRES have a higher risk level then VAST ( which as i say they do allow when space )
They would not let me buy SAR Friday even though i traded this  with them a couple of years back. 

johnburman

Can you help me - how does the broker make money from differing stocks i.e. other than commisisons (and perhaps stock lending) why should a broker care what stocks you buy? 

adeel26

Is any body using X-O here. I just opened an account with them. How long does it take to transfer the money using in account transfer option?

masonic

johnburman said:

Can you help me - how does the broker make money from differing stocks i.e. other than commisisons (and perhaps stock lending) why should a broker care what stocks you buy? 

In this situation, the broker makes money in the same way that a market maker would make money: they benefit from spread by creating a substitute market and matching orders themselves, away from the genuine market. Hence they are able to profit from the spread themselves. They can't make this money when the stock being traded is illiquid and there is nobody on their substitute market wanting to sell when others wish to buy, so they would end up losing money on such trades because they have to route them out to the genuine market.

There is an inherent conflict of interests in such situations because order execution is not immediate and it is in the broker's interest to give the worst price available around the time the order was placed, while the customer's interest is to get the best price available.

johnburman

But masonic, what about the "best execution" rules in the T&Cs?  You get the "best " price on the LSE (I only buy LSE stock).  That transaction - all tranactons - is listed on the LSE site.
So the BROKER can not make money ont he "spread"....or have I misunderstood 

Alexland

adeel26 said:

Is any body using X-O here. I just opened an account with them. How long does it take to transfer the money using in account transfer option?

A cash only transfer would usually take a couple of weeks from when they recieve your form and they say stock should be 28 days but it really depends on the complexity and speed of everyone involved and some are going slower due to the virus.

masonic

johnburman said:

But masonic, what about the "best execution" rules in the T&Cs?  You get the "best " price on the LSE (I only buy LSE stock).  That transaction - all tranactons - is listed on the LSE site.
So the BROKER can not make money ont he "spread"....or have I misunderstood 

I suggest you review the Order Execution Policy in more detail, in particular sections 3.4-3.6. In particular, note the part underlined at the end of section 3.4: "You  agree  and  expressly  instruct  that  DEGIRO  may  make  use  of  all  the  places  of  execution mentioned in this document.", that is, the national exchanges, alternative exchanges such as Chi-x, and outside of an exchange.