In the event something would happen to CENTRALTRADEHUB, your investments will not be treated as recoverable assets to CENTRALTRADEHUB’s creditors.
Centraltradehub Ltd is an international Forex broker that holds a special brokerage license at IFSC Belize “Trading in financial and commodity-based derivative instruments and other securities”, number 000148/197.
At CENTRALTRADEHUB you can rest assured that your investments are held securely. CENTRALTRADEHUB uses a separate legal entity (SPV) to hold your assets. This means they are held separate from the assets of CENTRALTRADEHUB . The sole task of this entity is to administer and safeguard your investments. By law, it cannot perform any commercial activities. In the event that something would happen to CENTRALTRADEHUB , your investments will not be treated as recoverable assets to CENTRALTRADEHUB ‘s creditors and will remain in the safekeeping of the separate entity. This entity will hold your assets with third parties. Where possible or legally required, CENTRALTRADEHUB will require these third parties to provide for asset segregation so as to protect the investments of the clients of CENTRALTRADEHUB against their bankruptcy. Rules with regard to asset segregation are different in every country (both within the EU and outside the EU). If there is no asset segregation in relation to a third party in the custody chain, then the financial instruments held with that third party might be lost in case of the bankruptcy of that party. For more information, please contact live chat
Money Market Funds
CENTRALTRADEHUB is not a bank but an investment firm. A bank may use the money that clients keep with it for its own (business) purposes, loans to third parties and other investments. Since this carries forth a risk, the deposit guarantee system is available for banks.
Because CENTRALTRADEHUB is not a bank, it is not allowed to hold the money of clients on its own balance sheet or use it for its own investments. You thus do not keep money at CENTRALTRADEHUB . Money that CENTRALTRADEHUB receives from you is immediately invested (based on a standing order) in a Money Market Fund.
Money Market Funds are investment funds that aim, with as little risk as possible, to achieve a return that is equal to the regular market rate in the currency concerned. The value of these funds may fluctuate, just as with any other investment. If you do not want to invest or invest less in Money Market Funds, you can invest the value into other Financial Instruments of your choice or you can give CENTRALTRADEHUB the instruction to book money back to your bank account.
All assets within the Money Market Funds are held separately from the fund issuer and therefore do not run any risk in the event of bankruptcy of CENTRALTRADEHUB or the issuer. For more information about Money Market Funds you can contact firstname.lastname@example.org
When you become a client, you give CENTRALTRADEHUB the right to lend out your securities. This is done to be able to facilitate going short; ‘Debit Securities’. The risks of Securities Lending are managed as follows:
– Firstly, CENTRALTRADEHUB (and not the borrowing party) is the ‘counterparty’ and therefore guarantees the timely return of the lent assets with its own equity.
– Furthermore, CENTRALTRADEHUB requires security from the borrowing party. This is provided by the right of the pledge that CENTRALTRADEHUB has on the balance of that client and the borrowed assets are included in the continual risk monitoring of CENTRALTRADEHUB .
– Damage for a client whose assets are lent therefore arises only at the moment when both the borrowing party and CENTRALTRADEHUB are no longer able to meet their obligations (i.e. are bankrupt) and the value of the asset has fallen or the value of the lent securities has risen. The amount of the damage is limited to the difference in value between the lent securities and the security provided by the borrower.