The last 20 years I have been working in heavily regulated environments; in cock-ups like this were your Retail clients got royally screwed (for a second time in such a short period), on a repeat issue, the hammer will fall HARD on their heads. Anyone wanted to sell to minimize losses has been severely damaged.
There are many ways to resolve these issues FAST. The easy way is to throw money at this. Go tomorrow (literally) and bypass all procurement controls and go to a mega big provider and scale this asap. Any financial services with a half decent IT has done the paper exercise to this scenario (at least for the purposes of BCP/DRP). The slow/better/mature way may be too slow, especially with the current market conditions.
The RH folks will definitely get a visit from SEC, their external auditor, and their external auditor will get a visit from SEC.(their auditor will be in the deepest of shits)(how come they failed to spot such a going concern issue?)(what the hell were they looking for on their audits?)(did they only send juniors over there?)
I feel sorry for the retail traders that got knocked down. I think that anyone locked in buying at 27-28k (US30) should wait 6 months to breakeven and after the US elections (irrespective of the winner) there will probably be a rally.
They aren't that fantastic either. They had issues today as well, I couldn't exit out of spreads, so I had to liquidate everything and that was failing too. It was a hot mess.
Edit: I didn't actually want to liquidate all my holdings but it was better than staying in and risking everything else.
There are many ways to resolve these issues FAST. The easy way is to throw money at this. Go tomorrow (literally) and bypass all procurement controls and go to a mega big provider and scale this asap. Any financial services with a half decent IT has done the paper exercise to this scenario (at least for the purposes of BCP/DRP). The slow/better/mature way may be too slow, especially with the current market conditions.
The RH folks will definitely get a visit from SEC, their external auditor, and their external auditor will get a visit from SEC.(their auditor will be in the deepest of shits)(how come they failed to spot such a going concern issue?)(what the hell were they looking for on their audits?)(did they only send juniors over there?)
I feel sorry for the retail traders that got knocked down. I think that anyone locked in buying at 27-28k (US30) should wait 6 months to breakeven and after the US elections (irrespective of the winner) there will probably be a rally.