Administrators of Reyker Securities aim to complete reconciliation of client assets by mid-Jan 2020

Maria Nikolova

The Joint Special Administrators are reviewing the best and final offers received for Reyker’s business.

Smith & Williamson LLP, the Joint Special Administrators of Reyker Securities, have provided an update to the clients and creditors of the firm that entered administration in October 2019.

The Administrators aim to complete the reconciliation of all client assets by mid-January 2020 at the latest.

Separately, the JSAs are reviewing the best and final offers received for Reyker’s business and expect to share details of their preferred transferee with the regulatory bodies this month with a view to being able to advance negotiations of the detailed contractual terms upon which those assets may be transferred in January 2020.

In addition, the JSAs are developing a bespoke client portal so that clients can agree their final claim to Custody Assets and Client Money which will facilitate the implementation of a Bar Date and Distribution Plan and the safe transfer of Client Assets to the transferee, being a new regulated broker. Such a process hinges on successfully concluding the aforementioned negotiations and the proposed transferee being willing and able to receive a wholesale transfer of all client assets.

The first meeting of the Clients’ and Creditors’ Committee is set to be held in January 2020.

The administrators continue to liaise with the Financial Conduct Authority (FCA) and Financial Services Compensation Scheme (FSCS) with regard to the progress of the administration and potential claims that may arise from clients in the event there is any shortfall in assets returned to clients. The administrators’ initial assessment is that, if and where the costs of the process are met from client holdings, the majority of eligible clients will be covered by the FSCS compensation scheme.

The administrators intend to work with the FSCS so that any compensation due to eligible clients may be paid direct to the JSAs and in advance of any transfer to the New Regulated Broker. This os poised to mitigate the need for any eligible client to submit a claim to the FSCS themselves and facilitate a transfer of each eligible clients’ assets in whole.

A meeting of Reyker’s clients and creditors was held on December 16, 2019 at which the following resolutions were passed by both the clients and creditors by a significant majority:

  • Resolution 1 – THAT the JSAs’ Proposals (as previously circulated) are approved; and
  • Resolution 2 – THAT a clients’ and creditors’ committee be established.

Additional information on the outcome of the meeting may be found in this notice.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”