Worldspd Share Discussion Threads

[nasdaq_investor] 19/3/2012 14:31

Baldeagle, interesting, thanks, I'll see if it is possible to get confirmation from the administrators as well.

[baldeagle5] 19/3/2012 14:25

Nasdaq my understanding is that as the segregation status was not adhered to that the Retail & Professional clients are all in the same pot so to speak.

The whole cash position of Professional clients was available to mix with WS funds.

[nasdaq_investor] 19/3/2012 14:06

For professional clients is it just the margin money that is not ring fenced or is the whole cash position available to mix with WS funds?

An important point as professional clients may rank equally on their cash position but not the margin monies.

[nasdaq_investor] 19/3/2012 14:01

RSJ2 - is that regardless of whether they are retail or professional? i.e. are both ranked equally in the creditor pecking order?

[lift and shift] 19/3/2012 13:47

I finally got through although the girl on the other end was very limited on what she could say:-

The only information I could obtain is nothing more than what is already in circulation.

All positions were closed as of close of business on Friday. She had no access to my account, could not tell me what my positions were closed at or even the final value of my account.

Worldspreads have gone into "Special Administration" which means that personal clients & small businesses will get paid out somewhat quicker than if it was in normal Administration.

KPMG only took over last night. The Worldspreads website is currently being updated to advise all customers on help and what they need to do next. I presume once uploaded the website will be our source of information.

I did press and ask other questions but to no avail, the girl I spoke to couldn't even confirm that Twowayspreads was a subsidiary company.

I`m sorry I can't post anything any more significant but I am none the wiser after speaking to KPMG than I was before.


L&S

[jcxjr100] 19/3/2012 13:40

spoke to one of the representatives:-
1)Special administrators will work on return of clients assets as quickly as possible
2)Looking at alleged fraud and conduct of directors. confident report will be done shortly....
3)Guidance on how to make a claim will be on the Worldspreads website shortly.

Hope it helps.

Heading out for rest of day.

XJR100

[duckdown] 19/3/2012 13:09

Thanks Lift & Shift

[lift and shift] 19/3/2012 13:00

I have been on hold with the administrators to talk to one of their representatives for the last 25 mins. I will post any useful information should I get through.

[mattjos] 19/3/2012 12:57

Has anyone actually managed to contact the Administrators today?
Number is simply engaged all the time

[lift and shift] 19/3/2012 12:31

I have/had numerous positions with Twowayspreads, i`m presuming a subsidiary company to Worldspreads as the Worldspreads administration notice comes up when I try & log in.

Can anyone advise if my open positions would of been closed on Friday or will they still be running, also do we know how when or how our monies will be paid back or how we need to claim.

I am under the £50k threshold but my positions still runs into 10`s of thousands so any advice would be appreciated. As someone said earlier its not just the cash but the time spent to build up large (for me) positions in small cap companies.

Thanks in advance
L&S

[the ballcock] 19/3/2012 12:25

Customers of a spread betting firm are likely to be left seeking compensation after an estimated £13 million black hole in its accounts has been revealed.

WorldSpreads, which runs online and telephone trading services, was placed into administration over the weekend after "accounting irregularities" were found.

Administrators at KPMG said the group's 15,000 customers were owed £29.7 million but the group has only £16.6 million of cash, leaving them facing a large shortfall.

However, customers may be reimbursed up to £50,000 by the industry's Financial Services Compensation Scheme, depending on their circumstances.

On Wednesday, chief executive and co-founder Conor Foley resigned, two weeks after chief financial officer Niall O'Kelly stepped down following a profits warning.

Its shares were suspended from trading on the Alternative Investment Market on Friday.

Redundancies among the firm's 66 staff - most of whom are based in London - are likely as administrators wind down the business. WorldSpreads is based in London and its parent company is in Dublin.

The Financial Times reported that WorldSpreads mixed money from customers' accounts, which should have been segregated, with its own funds.

The industry's compensation scheme pays up to £50,000, mainly for individuals and small firms. But some of its clients, including other spread betting firms, are believed to be owed larger sums, raising the prospect of a lengthy legal struggle.

The Financial Services Authority said: "Clients should be aware that any shortfall in the client money accounts will impact the amount of money that can be returned."

[someuwin] 19/3/2012 11:33

RNS Number : 6059Z

Ig Group Holdings plc

19 March 2012

19 March 2012

IG GROUP HOLDINGS PLC Statement re Worldspreads Limited

IG Group Holdings plc ("IG" or the "Group") notes that Worldspreads Limited ("Worldspreads") has appointed Joint Special Administrators following the identification of a material shortfall in client money.

The Group has no direct financial exposure to Worldspreads. Worldspreads had a UK market share of approximately 3%, compared to the Group's share of 41%, according to the most recently available market research.

IG Group fully segregates all individual client funds, even where regulation permits otherwise and does not utilise client money for its own purposes.

[llados] 19/3/2012 11:09

Simon Cawkwell - Appreciate your views on WorldSpreads, but must remind you that ladies trade as well as gentlemen! L.

[the count] 19/3/2012 11:05

--->UNDERVALUEDASSETS

I think the winner here will be future spreadbettering clients, if spreadbetting survives as I'm sure it will.

But the way segregated accounts will be policed will be a lot stricter after all the fall out from this and the MF Global fiasco.

Regards,

THE COUNT!

[undervaluedassets] 19/3/2012 10:31

I think the winner here will be IG.

I think that other spread betting companies will lose their clients to IG.

Just a simple case of theft here isn't it ?

[nasdaq_investor] 19/3/2012 10:23

Simon Cawkwell,

You will be classed as a professional client no doubt. Therefore my understanding is that you will rank below retail clients with their protected funds in the creditor pecking order. Am I correct in my understanding?

Also, my understanding is that Worldspreads have legal authority to use professional clients margin money but any funds over and above margin will rank alongside retail clients in terms of creditor priority. Is that correct?

Also, do you think there is mileage in suing the auditors?

Regards.

[the ballcock] 19/3/2012 10:10

i hope some of you were shorting them as a hegde

Use IG mate, they way ahead of cmc, cmc is bustin my balls

[simon cawkwell] 19/3/2012 10:03

Gentlemen,

Much though I hold the FSA in contempt, it seems unlikely that they are to blame for this WSPR collapse. If it is true that client funds were nicked by executives, short of an intense, and therefore uneconomical, rolling audit and control programme, there is no remedy.

The really important review now required is control of KPMG's fees. This will have a very material effect upon the liquidation dividend to creditors.

Simon Cawkwell

[gskb] 19/3/2012 09:27

What a bunch of useless w*nkers!

FSA toothless befoons. (I had some dealings with someone who had no knowledge whatsoever. (Should have worked for HMRC!)

Auditors are useless muppets as proved time and time again.

KPMG, PWc , Ernst & Young et al are all money grabing ar.. holes.

(There's no money in auditing because if you do it properly it takes too long and you make no money).

Notice Intertrader's morning report email has NO MENTION WHAT-SO-EVER about Worldspreads. Talk about , elephant in the room. (Not that it's any use anyway).

GLA.