Marshall Futures out

Press, 22 December 1987, Page 23

Marshall Futures out

Marshall Futures, the Christchurch pioneer futures trader, is out of business because of a loan unrelated to futures trading.

The limited-liability company has been suspended from trading on the Futures Exchange because its assets have fallen below the exchange minimum. Marshall Futures had lent money to Marshall Strowan, Ltd, which has just been put in receivership.

A total of 350 open futures contracts has been taken over by two other members of the exchange, Egden Wignail Futures and Company, of Christchurch, and DFC Futures, of Wellington. However, no provision is made for those with deposits and margin credits with Marshalls. The Futures Exchange has a fidelity fund of $lOO,OOO, and there is provision in its articles for a call on members for additional money. Traders (investors) should apply to the exchange if Marshall

Futures is unable to resume trading and there is difficulty obtaining refunds. Marshalls has been a well-run, efficient, and scrupulously honest futures firm, and has played an important part in the development of trading in New Zealand. It is ironic that it is in difficulties while some fringe operators, not exchange members, continue trading. The parent firm, John Marshall and Company, was a wool trader, and became interested in futures in the days of the London and New Zealandbased wool contracts. John Marshall and Company’s trading was taken over by Wrightson Dalgety. Marshall and Strowan, which was virtually a holding company, and Marshall Futures, were jointly owned by AMP Financial Corporation (40 per cent) and the Marshall family. There were no cross-holdings between the two Marshall companies.

Marshall Equities, Ltd, a member of the Christ-

church-Invercargill Stock Exchange, is a subsidiary of Marshall Futures. Mr Keith Mair, the manager of Marshall Equities, said this firm was not affected. “It is business as normal,” he added. Mr Tom Anderson, chairman of the Christ-church-Invercargill Stock Exchange, said he was not aware of any problems for Marshall Equities. As an asset of Marshall Futures, a possibility arises of Marshall Equities being sold. The Futures Exchange met late on Sunday and issued a statement near midnight announcing the suspension of Marshalls because it no longer had the minimum net tangible assets of $350,000. It had informed the exchange last week of its position. The income of Marshall Futures is now cut. However, Mr Peter Marshall, the chairman, said all was not yet up. Every avenue was being/ explored to find ways of meeting the exchange’s requirements.

“We’ll fight to the bitter end,” he said. Marshall Futures has seven employees. Dr Brent Layton, a director of the Futures Exchange, said Marshall Futures had behaved responsibly and would quickly return to trading if it couild meet the capital requirements. Now manager at Egden Wignail Futures and Company, he is a former manager of Marshall Futures. There has been criticism in the financial community of AMP for not putting capital up to bail out its investment, and of the Westpac Banking Corporation, in Wellington, for putting Marshall Strowan into receivership. But a senior executive in Marshalls said the criticism was precipitate, and the local branch of the bank had been supportive. A spokesperson declined to comment on the reason for Marshall Strowan’s being put in receivership.