Rampart Securities Inc. has requested that the Investment Dealers Association and the Ontario Securities Commission lift the freeze on client accounts to facilitate liquidating trades.

The IDA froze the 12,000 accounts yesterday citing a capital deficiency at the firm.

In a statement, Rampart said that if the freeze persists, its clients will experience irreparable harm in being prevented from liquidating their positions.

It also said that the liquidating trades will only help the situation and cannot prejudice the IDA’s case or position.

Rampart stated that it is currently not undercapitalized by any qualitative or quantitative test and that its risk adjusted capital was in excess of $5 million. It noted that the $20 million call loan facility provided to the firm by its bankers has now been paid down to approximately $7 million, and would have been reduced further had the suspension not been imposed

The company noted that it has been contacted by several parties who have expressed an interest in purchasing the assets of the firm or alternatively facilitating the orderly transfer of client accounts. The IDA has been advised of the parties involved.

Rampart said it seeks to co-operate with the IDA and the OSC to ensure that there is no harm to the public, and that it hopes to bring its dispute with the IDA to closure for the benefit of the clients of RSI and the capital markets.