The administrators have stated that they have around 90-95% of all investors cash accounted for so far and they are still untangling funds out of the Metatrader platform that offered leverage. All cash and stocks have been frozen so account holders can't move anything out just yet
Latest update from Lance Spicer -
• The management of Halifax was told by their accountants there was a discrepancy in client accounts and they immediately placed (next day) the company into Voluntary Administration. • At the creditors meeting it was revealed that there was a discrepancy in the order of $10m to $20m out of clients Funds of $211m. A shortfall of 4.7& to 9.4%. Clearly not the end of the world. • However, it was revealed that the discrepancy was all related to the MetaTrader accounts and NOT the Interactive Brokers (Trader Work Station- TWS) accounts. • Why MetaTrader? Well, it’s a platform used by traders who like leveraged products and risky investments like CFD’s, FX, futures and options and the like. If something is to go wrong, it will go wrong in these “leverage suitable platforms”. I am happy with TWS, and will stick with it. • The Administrators have said they are working quickly to release the funds and accounts they can, but must ensure they make sure they do it legally and have checked everything first. This process takes time. • When these types of “administrations” have happened in the past, it has often been the case that clients have been “segregated” into classes and any losses have been apportioned based on where the losses were. • I am also aware there are substantial insurance policies covering various types of losses that Halifax held and this may defray further any losses.
So, my “personal expectations’ for my own two accounts (both TWS) I have with Halifax are that my accounts/funds will be returned/restored in full and in the next month or so. As for the other the MetaTrader accounts, they will have to have any losses apportioned, based on what the courts determined (if that is the case that they are apportioned just to MetaTrader as has been the case in the past). After that, insurance policies will come into play.
