Broker settles but will be closely watched

The broker and margin lender Tricom will be under daily supervision by the ASX after failing to settle trades on Tuesday. While the firm did settle its outstanding obligations yesterday afternoon the ASX will increase scrutiny of Tricom to reassure that market that it will be able to meet settlement requirements in the future. As well as having an ASX staff member on site every day, an independent auditor will be appointed to examine “Tricom’s operational and financial control environment”. The S&P/ASX 200 index lost 1.7 per cent yesterday with investors concerned about the impact that a failure at Tricom would have with a large number of shares potentially flooding the market. Tricom holds around 3 per cent of the margin lending market with around 29,000 accounts.

Source: The Sydney Morning Herald