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

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

<