There are a number of factors that have adversely affected the market and the liquidity - the keys ones being a spike in the geopolitical uncertainty and recent developments in the region, the liquidity sapping effects of an IPO, tighter controls at brokerages especially when it comes to margin accounts
," Farid Samji, a market strategist in Dubai, said.
The margin decrease was due to rise in the commercial accounts, which are generally higher revenue, lower margin accounts
Eligible accounts include RRSPs, TFSAs, RESPs (in CAD) and non-registered cash and margin accounts
From 2008 through 2014, Ariel Quiros and Stenger used bank accounts, as well as brokerage and margin accounts
at RJA, to transfer the limited partnership funds to and from different partnerships or entities.
Chinese regulators suspended three large brokerage firms from extending margin accounts
- essentially loans - for new clients for three months, and that led the Shanghai market index to plummet by more than 7 percent, the biggest drop in six years, reports Fortune.
The Central Bank directives are probably the weakest point as we saw in 1999 when the Central Bank demanded the closure of all the margin accounts
shouldn't be used by inexperienced investors, or those who are putting money at risk that they can't afford to lose.
Both house and customer margin accounts
are adjusted daily to reflect changes in the mark-to-market value of positions.
They were said to have made a series of margin calls on the mortgage company, before selling off the collateral Thornburg Mortgage had used to run its margin accounts
with the banks.
In periods of rising stock markets, investors borrow more margin loans and buy more stocks in their margin accounts
, inducing higher stock prices and subsequently qualifying the borrowers for additional margin loans.
The Dodd-Frank Act contains several provisions to raise the minimum assessments paid by brokerages to fund SIPC, increase customer cash advance limits, and provide coverage for futures held in investors' portfolio margin accounts
We needed to explain that OTC derivatives end users are prudent professionals for whom OTC derivatives are essential tools and that requiring margin accounts
would drain money from the productive economy.