Out of interest

[The_Trader]

What will happen to our money market and stock portfolios should Standard bank fold like Saambou a couple of years ago?

[SimonPB]

equities, futures, options => JSE Guaranteed fund ..
CFD's, stand in the Q ..

[The_Trader]

So with the equities,futures and options being JSE guaranteed you will just have to find a new broker again.

[Spoegs]

Ah - the not so often spoken about risks of OTC products.

[SimonPB]

well depends who you speak to .. here we are very open about the fact that you take counter party risk when trading an OTC product ..

[#6]

Hence the even bigger risk of those that trade with smaller stations, like GT247 or ideal. But Simon, I thought CFDS's resulted in an actual position taken out - i.e. stocks actually bought?

[Spoegs]

I wasn't implying that SB are hiding anything, but the recent proliferation of OTC products often only comes with the trading risk warning not the implied "underwriting" risk warning.

[Shado]

the thought did cross my mind " too big to fail"is long gone , make sure all you contracts are uptodate!

[SimonPB]

sure the stocks are bought .. but being OTC there is no third party guarenteeing the transaction ..

[The_Trader]

Thanx for shedding some light on the subject guys I appreciate it.