Reyker Securities gets declared as defaulter on London Stock Exchange

London Stock Exchange (LSE) has just posted a statement regarding Reyker Securities plc.

The Exchange suspended the membership of Reyker on October 7, 2019 pending clarification of the firm’s position. On October 8, 2019 Mark Ford, Adam Stephens and Henry Shinners of Smith & Williamson were appointed as Joint Special Administrators.

LSE explains that it has subsequently been in communication with the administrators regarding the firm’s outstanding on Exchange trades and the administrators have now confirmed that Reyker is unable to fulfill its obligations in respect of its unsettled Exchange market contracts. Therefore, Reyker was declared a Defaulter on the Exchange at 13:15 on October 23, 2019.

Member firms are advised to 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. Euroclear UK and Ireland Limited (the operator of CREST) has suspended settlement of all trades undertaken by Reyker due for settlement through its facilities.

The Exchange has set up a dedicated section on its website to provide interested parties with information on this default.

Any member firm or person who believes that they have an unsettled on Exchange trade with Reyker at the time of their default is requested to provide the Exchange with details of their transaction(s). Notifications of unsettled trades should be made to the Deputy Default Official in accordance with the instructions given, and in the form provided, on the Exchange’s website at:

• Unsettled Reyker Securities plc Trades – Member Firms

or

• Unsettled Reyker Securities Plc Trades – Non Members

for non member firms and, if possible, within the next 5 business days.

LSE has appointed Liam Smith as the Default Official and Dagmar Banton as Deputy Default Official.