We would typically get a call from the clearing firm demanding delivery within a period of time. To be quite honest, in the past 3 years of heading our trading desk, I dont think we've had more than 1 or 2 buy-ins, in total, if that. To be honest, and I mean this sincerely, I don't recall one but I am saying 1 or 2 because I've heard Yi and Bernie talkinga bout one or twice in the 3 years.
Part of this could be that we are asmaller firm, part could be that datek clears through a smaller clearing firm with less institutional pieces of stock, or some other reasons, which I have heard people discuss, but which I would rather not discuss. I am sure many ahve heard and spoke them.
Part of it could be a lack of tolerance from Datek in extending certain courteousies. Ie. when you have a few hundred thousand accounts, you cant really give anyone an extra day or two. When you have a few thousand, you get to know your clients, care for them, dont want to see them hurt and do what you can to extended, etc.
Like I said, I dont think we've had more than 1 or 2 buyins in the past few years, yet I am more going off my experience with margin calls, etc., which ofcourse happen regularly.
Regards,
Steve |
