Coronavirus-driven market volatility has led many brokers to issue margin calls to investors—i.e., demands of cash or additional collateral from investors trading on margin. Investors may feel such margin calls are unjustified or may disagree with a lender’s valuation of collateral in their account. Lenders may also unilaterally seize and liquidate investor collateral to meet the margin call, often with little or no notice to the investor. This memo addresses some of the most pressing questions being asked by investors and other margin traders in this volatile trading environment.
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Andrew Rossman
andrewrossman@quinnemanuel.com
Phone: +1 212 849 7282
Christopher Kercher
christopherkercher@quinnemanuel.com
Phone: +1 212 849 7263
Stephanie Solomon
stephaniesolomon@quinnemanuel.com
Phone: +1 212 849 7164
John Quinn
johnquinn@quinnemanuel.com
Phone: +1 213 443 3200
Karl Stern
karlstern@quinnemanuel.com
Phone: +1 713 221 7171
Jonathan Bunge
jonathanbunge@quinnemanuel.com
Phone: +1 312 705 7476