Jan 14 Direct Markets Holdings Corp,
parent of broker-dealer Rodman and Renshaw LLC, filed for
bankruptcy on Friday and said it would liquidate, according to
Direct Markets, along with its affiliates Rodman and Renshaw
LLC and Direct Markets Inc, filed a Chapter 7 petition in a U.S.
bankruptcy court in the Southern District of New York.
The company listed total assets of $1 million and
liabilities of $10.6 million as of Jan. 9.
In September, Rodman and Renshaw informed the Financial
Industry Regulatory Authority that it was no longer in
compliance with regulatory capital rules and would cease
conducting its securities business.
Direct Markets was previously Rodman and Renshaw Capital
Group Inc, a small investment bank. It changed its name in May
to focus on developing financial technology applications and
operating the DirectMarkets platform.
Former broker Penson Worldwide Inc, once a
securities clearing broker that has since divested most of its
operations, also filed for Chapter 11 bankruptcy on Friday.
Penson said it was unable to successfully streamline is
business after asset sales and was also dogged by questions from
the Securities and Exchange Commission about its accounting and
a class action lawsuit by shareholders.
The case is In re: Direct Markets Holdings Corp, U.S.
Bankruptcy Court, District of Southern District of New York,