LSE suspends bankrupt broker Hume Capital

LONDON (ShareCast) - The London Stock Exchange has suspended the membership of bankrupt broker Hume Capital Securities (LSE: HUME.L - news) after defaulting on unsettled exchange market contracts. The broker, which is an adviser to listed firms including Great Western Mining , LPA Group (LSE: LPA.L - news) , Orogen Gold and Coral Products (LSE: CRU.L - news) , called in the administrators on Monday and the LSE suspended its membership on Thursday evening after monitoring Hume's outstanding on-exchange trades.

The LSE said that in light of information it has since gleaned, it now considered that Hume Capital was "unlikely to be able to fulfil its obligations in respect of its approximately 130 unsettled exchange market contracts".

Therefore, under the exchange's rule, the broker was declared a defaulter.

Great Western said it had apppointed Beaufort Securities as a joint broker with immediate effect to replace Hume, while LPA, Coral and Orogen all said they were actively seeking to appoint a replacement broker shortly.

The LSE called for other firms or people who had had an unsettled on exchange trade with Hume Capital at the time of their default to get in touch.

Administrators Leonard Curtis said interested parties could find out more details on a specially created page on their website: http://www.leonardcurtis.co.uk/index.php/news/31/15/Special-Administrators-appointed-to-Hume-Capital (Other OTC: CGHC - news) -Securities-plc