JHB Capital LLC uses a mix of custodian relationships to help lower our, and your, specific event risk to counter parties risk. We can never guess when the next counter party risk event will happen, we can only try to prepare.
While this strategy is no guarantee against a market locking up event, it will help with lower specific market risk to any individual custodian having issues like have been in the news with MF Global of late.
What we mean by this: If you have a large account with us, we will request that you open like registered accounts at a number of select brokerage firms. This allows you to wire funds between brokerages if it appears a custodian is experiencing under-capitalized stress or is having headline event risk due to market dislocations that have become the norm of today's market.
Depending upon the size of your account, we may suggest that you open up a banking account with a major private wealth management firm to provide additional sources of event risk liquidity management.
This is one way we address the risk of a broker/dealer or futures commodity house having material impacts on your account balances.
Your funds stay in your control, at these different institutions. You decide if you want to transfer the funds. We manage those funds for you.