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Online Share Trading

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If Standardbank goes belly up?

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Lee_1
Frequent Contributor
If Standardbank goes bankrupt, is our investment in Standard OST ringfenced and safe? I guess we would be talking separately about money invested in shares, and cash holdings in the OST account.
11 REPLIES 11
SimonPB
Valued Contributor
it isi protected by the JSE guaranteed fund
Lee_1
Frequent Contributor
Thanks. What does protected entail Simon? 100% all money secure?
Rams
Super Contributor
Not applicable
your capital is protected (trusting that Auditors have ensured there are no shenanigans though) - Rams is correct, your CFD positions won't be. You will most likely hurt quite badly on the CFD front, as all your open positions would be closed out - at a price completely outside of your control, most likely (and I doubt you would get the face value). Which begs the question - if you have CFD exposure, and OST fails, will your capital be used as collateral against the losses incurred on the CFD?
koos2
Super Contributor
so, what are you guys saying, its time to buy waff cfd's?
koos2
Super Contributor
THRESHOLD
Super Contributor
If it's any consolation - in the event that Standard Bank went to the wall - the rest of your portfolio would be shredded. So your uncovered CFD position losses would hurt less. HEH.
Rams
Super Contributor
I do futures and shares(Cash)...No risk.
THRESHOLD
Super Contributor
koos2
Super Contributor
Lee_1
Frequent Contributor
Brief response from Standardbank was "the Reservebank would have rescue measures". No mention of JSE Guaranteed fund. What particularly concerns me is not the shares as I suppose they are owned, but the cash balance that is held.