Jub Capital Management gets declared as Defaulter on London Stock Exchange
LSE considers that Jub Capital is unlikely to be able to fulfill its obligations in respect of its unsettled Exchange market contracts.
London Stock Exchange today declared Jub Capital Management LLP as defaulter.
The Exchange suspended the membership of Jub Capital on July 17, 2020 pending clarification of the firm’s financial position.
The Designated Members of Jub Capital have instructed Sterling Ford to take the necessary steps to place Jub Capital into Creditors’ Voluntary Liquidation. The Designated Members have proposed that Philip Anthony Roberts of Sterling Ford be appointed as Liquidator to Jub Capital, this proposal is to be brought to a meeting of members to be convened for 7 August 2020. The Exchange has subsequently been in communication with Jub Capital and the proposed Liquidator with regard to the firm’s unsettled on Exchange trades.
Given the information now available, the Exchange considers that Jub Capital is unlikely to be able to fulfill its obligations in respect of its unsettled Exchange market contracts. Therefore, Jub Capital Management LLP has been declared a Defaulter on the Exchange at 11:00 on 31 July 2020.
Member firms should ensure that no further settlement of their on Exchange transactions with the defaulter takes place. This is to ensure that the unsettled transactions, which will be covered by the Exchange’s default procedures, are not separately settled.
The Exchange can confirm that Jub Capital’s unsettled on Exchange non-central counterparty transactions were executed in an agency capacity. As a result, the Exchange will apply the rules relating to unsettled relevant agency contracts, D150 to D155, to the firm’s unsettled transactions. Under these rules, the parties to the contracts (i.e. the clients of the defaulting firm and the relevant market counterparties) remain obliged to complete their transactions on the terms on which they were originally dealt.