Failure of MJK Clearing: Case Study
- Topics:
- Equity,
- Financial Research
- Tags:
- Failure,
- Finance,
- Investment,
- Liquidation
- Source:
- Deloitte LLP
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Overview: This case study pertains to SIPC’s concerns related to the liquidation of MJK, a broker-dealer in Minneapolis. MJK cleared for 65 introducing broker-dealers and had approximately 175,000 customer accounts. At the time of this study, the liquidation has cost SIPC approximately $110 million. In its Request for Proposal, SIPC requested that Study should cover: The failure of MJK Clearing and the relationship of that failure to Rule 15c3-3; the implications, generally, of the stock lending business with regard to SIPC exposure, including a quantification of that exposure; and the implications of business transactions that could cause a similar failure to meet Rule 15c3-3 requirements. Read the case Study of the failure of MJK Clearing its objective, scope and approach and the interesting findings.
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Format: HTML & PDF | Size: 724KB | Date: Apr 2003 | Pages: 51
