Hypothecation and Investment of Customer Funds and Securities

[nickola.pazderic]

I'll post this again for "posterity" if not prosperity, no bad luck intended.

TOS claims:

It is important to realize that neither TD Ameritrade nor Penson Futures utilize a business model like MF Global. Unlike MF Global our clearing firm, Penson, does not trade proprietarily, they are only in the business of clearing trades acting solely as a custodian and clearing firm for our customer assets on the Futures side.

Second, all of our accounts are reconciled with Penson Futures daily with the added measure of an Autosweeps process of all Cash and Excess Equity being swept off of the books of Penson Futures to your TD Ameritrade account nightly so as to further reduce our counterparty risk with Penson Futures. The end result of this process is that most if not all of our customer funds that remain at Penson Futures are held at the clearinghouse of the particular exchange to which we route trades, primarily the CME and/or the ICE, for performance/margin purposes.

Additionally your equities account with TD Ameritrade is federally insured through either FDIC or SIPC depending on your Cash Sweep Vehicle (MMDA or Cash), either way they are insured up to $250,000.

Cash is held in your brokerage account, protected by Securities Investor Protection Corporation (SIPC) coverage applicable to the account against brokerage failure (up to $250,000).

Balances reflected in your brokerage account are FDIC-insured and are held by TD Bank N.A and TD Bank USA, N.A., or both (up to $250,000 per depositor, per bank). The IDA balances are not covered by the Securities Investor Protection Corporation (SIPC) protection applicable to your brokerage account.

Is this a satisfactory answer? Dunno. My instincts say no. But like Deckard, I'm a little person trying to crawl my way out of noodle bars, acid rain, and regular police harassment. He didn't even know he was a robot; and I don't know if my money is safe or that either.