An order to temporarily suspend business operations of Asia Wealth Securities Co, Ltd due to using the customer’s money in the amount of 157.99 million baht to pay for the purchase of shares with the clearing house without the customer’s consent until it can cause serious property damage’ the customer
once again created a shock in the brokerage industry Exacerbating the impact of unusual trading transactions, the shares of More Return Public Company Limited or MORE
notorious operation By throwing orders for MORE shares in the amount of 1531.77 million shares at a price of 2.90 baht, the total limit is about 4,500 million baht to pump money out of the broker. This creates chaos for many brokerage firms. the liquidity is in a state of flooding especially small brokers who are not in the network of commercial banks
over the past week Many small brokerages are facing cash outflows as clients withdraw securities pledged as collateral for stock trading. Migrate accounts from smaller brokers to a large broker with a stable financial status or as a broker in the bank group
The payment for buying MORE shares is transferred to the clearing house To pay investors who sell MORE stocks, small brokers are exhausted enough.
But the customer withdrew the collateral, the money flowed out, and the customer moved the account to another broker. therefore having to be tired dealing with situations to support himself to survive
The announcement of the closure of Asia Wealth Securities is the final blow. chasing small brokers Until some executives had to cry to find someone to help.
Asia Wealth Securities has a group of Thai Rung Union Car Public Company Limited or TRU as a major shareholder, with the Phaoenchoke group. Holds a majority stake in TRU, more than 70% of the registered capital
Of course, Asia Wealth Securities is not a broker that has been watched. facing financial liquidity problems Until unable to pay the selling price of the customer’s shares Because there was news that Asia Wealth Securities received compensation of 100 million baht from the order to sell MORE shares on Thursday morning, November 10th.
but no one knows Asia Wealth Securities took the customer’s money in the amount of 157.99 million baht and transferred it to the clearing house. in order to transfer and pay investors who order shares to be sold again
The payment for the sale price of 157.99 million baht appears to be the money the customer sells MORE shares.
serious crime even Until suspended from doing business will be a particular problem of Asian Wealth Securities But amid the chaos MORE stock and investors are still sensitive to the liquidity of micro-brokers.
panic will follow until it leads to the BROKER RUN crisis
A BANK RUN means people running to the bank and withdrawing money that any bank that encounters a BANK RUN situation may not be able to survive
So a BROKER RUN means that investors flock to certain brokers who are worried about liquidity problems. and a request to withdraw collateral or cash
As for Asia Wealth Securities, which the Securities and Exchange Commission (SEC) has ordered to return the money to customers within the specified time, believes that 157.99 million baht should not be a problem for the TRU group.
But the closure of Asia Wealth Securities stresses investors as a small brokerage. and can run to ask for a raise
The trigger of the RUN BROKER “MINI” has been fired by the closing order of “Asia Wealth”.
Victims of small brokers Robbery of 4.5 billion baht through MORE stock trading transactions, who will stay or go? We’ll find out next week.
