Old Small & Mid Cap Program Alert
A Frank Discussion About the Availability of Sub-$100M Trade Programs
Clients desiring cash programs with entry levels below $100M are facing a restricted availability of real programs. Changes imposed on transaction managers by financial authorities over the past few years have resulted in reduced yields offered by transaction managers or trade platforms operating at this level. The yields that were available years ago on these small programs are simply no longer available. Interest rates and investment yields remain generally at very low levels in the general financial climate we are facing today and viable trade placement transactions offering better and potentially more reasonable yields are very limited at lower capital levels.
Clients can no longer count on successfully entering a transaction if they wait to submit an application after SRM Services announces a new program’s availability. The reason is that the available slots are generally filled by clients who made preliminary submissions and were placed into a queue awaiting availability of a transaction. Our experience has substantiated this situation. We have seen several instances in which a client submitted an application within 48 hours of SRM Services learning of the program but was already too late to be considered.
Cash programs with entry levels of $10M or more are usually available and programs with lower entry levels may be continuously available. In practical terms, however, a client who is serious about entering a small-cap cash program should take the following actions prior to a transaction becoming available or knowing the terms and the timing of the next transaction:
A client who passes the initial compliance is placed into a queue awaiting availability of a program from a list of proven providers. No additional updates or information will be required until a transaction is made available. A full application package and transaction details will be provided to the client when a program with an entry level for which the client has demonstrated available funds becomes available. There will usually be more applications than available slots so an immediate cooperative response from an applicant is extremely important.
The client will have to act first and ask questions later as all full applications are effectively dealt with on a “first come - first served” basis and there is usually a waiting list of pre-approved clients who were either previously transaction participants or who demonstrated a co-operative capability to engage. No client is ever required to accept any contract with which they do not feel comfortable but a client who wants all questions answered before making application will likely be unsuccessful.
A successful engagement establishes a relationship between the Applicant and the Transaction
Team and Trader and enables the Applicant to access further opportunities on a priority basis as and when they are available.
If you have additional questions or wish to discuss the process of submitting an initial application, submit this Contact Us form.
Clients can no longer count on successfully entering a transaction if they wait to submit an application after SRM Services announces a new program’s availability. The reason is that the available slots are generally filled by clients who made preliminary submissions and were placed into a queue awaiting availability of a transaction. Our experience has substantiated this situation. We have seen several instances in which a client submitted an application within 48 hours of SRM Services learning of the program but was already too late to be considered.
Cash programs with entry levels of $10M or more are usually available and programs with lower entry levels may be continuously available. In practical terms, however, a client who is serious about entering a small-cap cash program should take the following actions prior to a transaction becoming available or knowing the terms and the timing of the next transaction:
- Submit an initial application consisting of an expanded CIS, passport, and proof of funds
- Maintain unrestricted cash funds that are freely available on short notice
A client who passes the initial compliance is placed into a queue awaiting availability of a program from a list of proven providers. No additional updates or information will be required until a transaction is made available. A full application package and transaction details will be provided to the client when a program with an entry level for which the client has demonstrated available funds becomes available. There will usually be more applications than available slots so an immediate cooperative response from an applicant is extremely important.
The client will have to act first and ask questions later as all full applications are effectively dealt with on a “first come - first served” basis and there is usually a waiting list of pre-approved clients who were either previously transaction participants or who demonstrated a co-operative capability to engage. No client is ever required to accept any contract with which they do not feel comfortable but a client who wants all questions answered before making application will likely be unsuccessful.
A successful engagement establishes a relationship between the Applicant and the Transaction
Team and Trader and enables the Applicant to access further opportunities on a priority basis as and when they are available.
If you have additional questions or wish to discuss the process of submitting an initial application, submit this Contact Us form.
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