|
|
Post by bonfemme on May 26, 2016 9:11:04 GMT
Just received the following: We would like to inform investors of a new rule that has now been applied to the secondary market.
Investors will be prevented from selling newly purchased loan parts for 7 days, unless their available funds balance is positive (i.e. the loan parts have been paid for).
This limit is to prevent the abuse we are seeing from investors buying loanparts and selling them without funding them. Good news I think
|
|
|
|
Post by uncletone on May 26, 2016 9:13:14 GMT
Well done Saving Stream. About time too.  |
|
|
|
Post by trilby on May 26, 2016 9:14:26 GMT
Is zero positive?
|
|
|
|
Post by dodgeydave on May 26, 2016 9:15:19 GMT
It is about time.
Hopefully reduce the amount of people gaming the system
|
|
|
|
Post by trevxe on May 26, 2016 9:16:38 GMT
I would have thought so, but I guess you could always just sell a £0.01 loanpart if you really need to get in the black without doing a bank transfer.
|
|
davex
Member of DD Central
Posts: 81 
Likes: 18
|
Post by davex on May 26, 2016 9:19:25 GMT
Good news indeed.
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on May 26, 2016 9:19:58 GMT
Not normally (unless you are French). However for most computer types zero is signed so there is a +0 and a -0.
|
|
vmail
Open image in a new tab.
Posts: 457
Likes: 217
|
Post by vmail on May 26, 2016 9:21:55 GMT
I don't get it. Why is it good news and why was it bad before?
|
|
tomtom
Member of DD Central
Posts: 262
Likes: 39
|
Post by tomtom on May 26, 2016 9:26:04 GMT
Just received the following: We would like to inform investors of a new rule that has now been applied to the secondary market.
Investors will be prevented from selling newly purchased loan parts for 7 days, unless their available funds balance is positive (i.e. the loan parts have been paid for).
This limit is to prevent the abuse we are seeing from investors buying loanparts and selling them without funding them. Good news I think
So what will happen if someone makes a bid and has not got the funds to cover his purchase?
|
|
cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
|
Post by cooling_dude on May 26, 2016 9:28:22 GMT
I don't get it. Why is it good news and why was it bad before? Stops people from snatching up loans they have no intention in funding to get the interest the next day. 7 days seems harsh (on genuine investors) and what about the PM savingstream?
|
|
|
|
Post by goldservice on May 26, 2016 9:30:19 GMT
It is about time. Hopefully reduce the amount of people gaming the system It may not reduce the amount of people gaming the system but it might reduce the amount of gaming by those people. Or it may not: The gamers may now have to hang on to their overhang. So they'll sell some older loans, perhaps, to clear their debt to SS. Then, when the next loan comes out, and their gaming means that they have an overhang on that one too, they can sell the overhang from the first one to pay for it. So will much change? They will have a greater exposure than usual but only ever to the latest loan.
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on May 26, 2016 9:30:53 GMT
So what will happen if someone makes a bid and has not got the funds to cover his purchase? Hopefully they will sell some of his other holdings. I don't get it. Why is it good news and why was it bad before? Stops people from snatching up loans they have no intention in funding to get the interest the next day. 7 days seems harsh (on genuine investors) and what about the PM savingstream ? Hopefully it will reduce the amount of overbidding, as now you there will be a cost if you get more than you actually want.
|
|
cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
|
Post by cooling_dude on May 26, 2016 9:32:02 GMT
Just received the following: We would like to inform investors of a new rule that has now been applied to the secondary market.
Investors will be prevented from selling newly purchased loan parts for 7 days, unless their available funds balance is positive (i.e. the loan parts have been paid for).
This limit is to prevent the abuse we are seeing from investors buying loanparts and selling them without funding them. Good news I think
So what will happen if someone makes a bid and has not got the funds to cover his purchase? You have to keep the loan part. To rebalance the books you would have to fund the investment or sell a different loan parts (that is over 7 days old) onto the SM. I wonder what happens if a investor doesn't balance the books; how will they be punished.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on May 26, 2016 9:37:38 GMT
It's not clear whether the restriction is lifted permanently once a negative balance has been cleared (by selling other parts or depositing cash), or whether all parts less than 7 days old are barred from sale whenever your cash balance is negative. For example:
Day 1: Allocated new loan part of £1000
Day 2: Clear the £1000 negative balance (so now free to sell the new loan part)
Day 3: Buy £500 of something on the SM, so back to a £500 negative balance
Can some of the new loan part be sold, or will it again be blocked from sale?
It doesn't make a huge difference either way, but it would be good to know before getting caught out! My guess is that, in the scenario above, the new loan part would again be blocked for sale until Day 8.
|
|
sam i am
Member of DD Central
Posts: 697
Likes: 555
|
Post by sam i am on May 26, 2016 9:40:15 GMT
I don't get it. Why is it good news and why was it bad before? Stops people from snatching up loans they have no intention in funding to get the interest the next day. 7 days seems harsh (on genuine investors) and what about the PM savingstream ? The restriction is on sales and you can only sell on the SM. Fund your purchase immediately (cash or other sales) and then the restriction is lifted. The only thing I'm not sure about here is if you pay for your sales and then later go negative due to a subsequent unrelated purchase. Does the restriction get reinstated on all parts that are less than 7 days old?
|
|
