RE: IG Gambling Machine13 Oct 2019 20:36
erazzel: here is my post of 11 September re IG payment of shorts:
'I received a reply from my IG contact now that he is back in the office:
"There has been an update. IG have settled all leveraged positions at zero. Which means shorts have been now received their profit - which were previously were held in proceeds account. It also means long leveraged positions have also been settled at zero and losses have been booked.
I received this this morning;
We have been notified by our broker that Frontera Resources has been removed from Crest and therefore removed off our book, which we have replicated as per procedure. We have asked if the Broker has further information on this and if we receive anymore we will send it over to you. Usually, in the majority of cases, if a stock is removed from Crest it means there is no further cash return to shareholders or a relisting. Rest assured if anything does have happen in the future we have a log of all client positions and will match the underlying market accordingly, where possible.
IG do not have a view either way and simply follow broker instructions.
I am trying to find out the process of reinstating positions both long and short, but my first thought is that it is unlikely that short positions will be reinstated at this point due to the fact if profit has been credited. There is nothing stopping that client taking their profit and closing account etc. not that it would come to that but it would be hard to enforce short losses once trades have been settled. Also clients who had short positions would have taken them against IG inventory so our broker wouldn’t not have a record of those positions. I imagine long positions will be reinstated.
Hope this helps. I will send more through as and when."
The question is why has their broker (HSBC) taken this action???'
Is this the post?
Sign In
Follow the stocks
