PrefBlog

What’s going on with Northern Securities, IIROC and Penson?:

9. NSI advised IIROC Staff that it was considering the following three options to address the pending wind down of Penson:
i. Retain a new carrying broker;
ii. Enter into an omnibus arrangement with an existing carrying broker or self-clearing firm and administer certain back office functions itself;
iii. Enter into a business amalgamation or a sale.

10. On November 23, 2012, IIROC Staff advised NSI that NSI’s failure to enter into a new introducing-carrying arrangement or to demonstrate progress toward an alternative arrangement would soon result in such financial and operating difficulty for NSI that NSI cannot be permitted to continue to operate without risk of imminent harm to NSI’s clients.

11. IIROC Staff also advised NSI that if it did not enter into a binding agreement for either a new introducing-carrying arrangement or a business combination with a self-clearing Dealer Member by December 7, 2012, then IIROC Staff would proceed to an expedited hearing to seek appropriate remedies from an IIROC Hearing Panel.

It was a mixed day for the Canadian preferred share market, with PerpetualPremiums gaining 6bp, FixedResets down 3bp and DeemedRetractibles off 2bp. Volatility was low. Volume was heavy.

This entry was posted on Tuesday, December 11th, 2012 at 11:44 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.