Hi Guys, need a bit of help on this can a CFD broker cloes a position whan a stock has been suspended at .000p? this is what i sent to the CFD provider any comments wellcome.am i right in saying this?
Mr xxxxx thank you for your email re my account xxxxx
The complaint simply revolves around the fact that I had a margined CFD position in Equatorial Explorations and the shares became suspended. Allegedly, your company emailed me twice for additional margin which I never received. I have asked for copies of these emails but have never received them, so perhaps, as an initial response, you could locate and forward them to me? As I didn't receive the margin calls, I didn't pay the margins. You then, 'sold' the position out at 0.00001 and started bankruptcy proceedings against me to reclaim the shortfall. The next question I have is how could you 'sell' the position when the shares had been suspended? Furthermore, how would this 'trade' be trade reported to the market and how would this trade be transaction reported to the FSA?
I would then question your escalation procedures, paying for legal fees, and subsequently passing those fees onto me, for bankruptcy proceedings in very short order. I have discovered through forums, the procedures other brokers have taken is to hold the share position is an 'escrow account' until such time as the monies have been received for the full payment due, whereupon the dividends and the shares are released back to the client. This seems in accord with the Treating Customers Fairly procedures and the FSA principle 6 . In addition, as you 'sold' a share when it was suspended and at a nominal minimal tick price, I would suggest that this is conducting market abuse and opens your company up to severe censure from the FSA.
By way of redress, I would like my share position to be restored to the original position and I would like the account to be credited with the interim dividend payments. Any remaining balance due, I will of course pay. I would appreciate your urgency in this matter as your actions have already caused me severe inconvenience and I wouldn't want to disproportionately escalate the complaint in the manner that you did to me with such difficult consequences.
Regards
Mr xxxxx thank you for your email re my account xxxxx
The complaint simply revolves around the fact that I had a margined CFD position in Equatorial Explorations and the shares became suspended. Allegedly, your company emailed me twice for additional margin which I never received. I have asked for copies of these emails but have never received them, so perhaps, as an initial response, you could locate and forward them to me? As I didn't receive the margin calls, I didn't pay the margins. You then, 'sold' the position out at 0.00001 and started bankruptcy proceedings against me to reclaim the shortfall. The next question I have is how could you 'sell' the position when the shares had been suspended? Furthermore, how would this 'trade' be trade reported to the market and how would this trade be transaction reported to the FSA?
I would then question your escalation procedures, paying for legal fees, and subsequently passing those fees onto me, for bankruptcy proceedings in very short order. I have discovered through forums, the procedures other brokers have taken is to hold the share position is an 'escrow account' until such time as the monies have been received for the full payment due, whereupon the dividends and the shares are released back to the client. This seems in accord with the Treating Customers Fairly procedures and the FSA principle 6 . In addition, as you 'sold' a share when it was suspended and at a nominal minimal tick price, I would suggest that this is conducting market abuse and opens your company up to severe censure from the FSA.
By way of redress, I would like my share position to be restored to the original position and I would like the account to be credited with the interim dividend payments. Any remaining balance due, I will of course pay. I would appreciate your urgency in this matter as your actions have already caused me severe inconvenience and I wouldn't want to disproportionately escalate the complaint in the manner that you did to me with such difficult consequences.
Regards
