Worldspreads - in administration - 16th Mar 2012

I'm not happy that my open positions were closed at a loss and i'm trying to find out under what authority they were able to do that.

IF WS couldn't trade then as far as i'm concerned all bets should be off, not just take your money ( i don't suppose those that closed for a profit are complaining) It was hardly unforeseen as the bosses at WS knew what was coming and we should get back what we had on deposit irrespective of open positions.

So if anyone can offer constructive advice as to the legalities or small print where it says they can take your money i'd be obliged.

What do you want them to do as administrators? When they come in, they have to close off everything to get the money stable.
It doesn't mean you won't get the full amount back but they have to start somewhere.
 
I appreciate they have to close the positions off, but they should be cancelled so no profit or loss to anyone.

I wont get the money back i had on the losing positions, they made it clear in the statement they sent today.

They are saying all i am entitled to is what is left after they closed my losing trades off, so as far as i can see they haven't stabilised anything just took money from the account to which i can't see how they are entitled to do so.
 
I appreciate they have to close the positions off, but they should be cancelled so no profit or loss to anyone.

I wont get the money back i had on the losing positions, they made it clear in the statement they sent today.

They are saying all i am entitled to is what is left after they closed my losing trades off, so as far as i can see they haven't stabilised anything just took money from the account to which i can't see how they are entitled to do so.

It's not their concern to do that though as an administrator.

" but they should be cancelled so no profit or loss to anyone."
What about the person on the other side of the trade? In the real marketplace they would have no option either but to close everything out just like with MFG. Perhaps as a spread bet / gambling things may be different.

As an administrator, it's go in, settle everything, and start to repay people with what's left. It's up to the law courts to settle claims after the fact.
 
I would be covered under the FSCS rule for the full amount i had on deposit, it's just arguing the toss with KPMG that my losing trades shouldn't be included and where to go from here.
 
Phew !! What a lucky escape. I had an account with them for a few months, made some good profits and withdrew most of the money (which they actually paid me !!) then had a nominal loss which they kindly wrote off so had a zero balance when the Administration letter arrived. You just never know who is doing what to whom.
 
I am in the position of having a losing trade closed out. I too would like to know the legal basis on which they can terminate positions at their will. My account actually has a negative balance (I had a credit account). I intend to lay low and wait for this all to blow over.
 
Dont really understand how the administration of this company will work. Administrators fees usually come out before money is paid to creditiors and in my experience administrators basically ransack what is left of the company leaving very little for anyone else. Since it looks like the total value of WS is going to be less than what should be in the segregated accounts how is that going to work? Are the adminsitrators going to be allowed to take their fees from segregated funds (even though legally that money does not belong to WS)?
 
I was under the impression the FSCS will bail out the small players that have under 50K in their a/c's, so maybe KPMG aren't too concerned about what's left if the minnows will get there deposits back.

I've just e-mailed KPMG asking why they have taken the money out of my a/c as opposed to canceling the bets.
 
these swines had £75 of my cash. i better get it back the lousy cheating
 
Does anyone have a copy of the Worldspread agreement.

The bit i am actually after is where it says that WS can close out your positions. I have asked the administrators for this, but so far they haven't responded other than saying the T&C's say so.
 
The agreement is attached.

Even though it says November 2007, I didn't open an account until November 2010.
 

Attachments

  • CustomerSpreadBettingAgreementNovember2007.pdf
    516.7 KB · Views: 292
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Aren't the auditors supposed to check segregated accounts?

The US regulators are owned by the broking industry, its totally corrupt, The brokers/banks write the laws.

You can read harry Markopolis's book "No One Would Listen: A True Financial Thriller"
He warned the SEC many years ago before Madoff was exposed, he showed them simply that the total volume going through the exchange meant Madoff's trades were fictitious.

MF Global is pure organized crime, Corzine was a big backer of Obama so he is untouchable no matter what crime he commits.

If you have a broker check what the credit rating the broker has. MF Global's credit rating had been declining to eventually junk status one day before it went bust.How many know what their broker's credit rating is?
 
There seems to be different dates on the Worldspreads Customer agreement, depending on which white label you opened an account with. For example:

Worldspreads, TwoWaySpreads: November 2007

Worldlink Markets (this white label closed at around September 2011, but existing clients dealt with Worldspreads directly): April 2009

Sterling Markets: April 2009

I have attached the Worldlink Markets April 2009 agreement for those who are interested.
 

Attachments

  • CustomerSpreadBettingAgreement.pdf
    315.1 KB · Views: 340
Having read the WS T+C's, the only reason they have to close your bets is a Force majuere, which i can't see how it applies in this instance, because it wasn't unforeseen, so i am still waiting to hear under what authority they had to close the bets at a loss, taking the money from my a/c instead of cancelling the bet.
 
(didnt notice I had this email! it arrived Friday)

Dear Sir/Madam

WorldSpreads Limited in (special administration) (“the Company”)
Joint Special Administrators - Samantha Rae Bewick and Jane Bronwen Moriarty

A meeting of creditors and clients of the Company will be held at the Methodist Central Hall, Storey's Gate, London, SW1H 9NH on 23 May 2012 at 11:00am, to consider the Joint Special Administrators’ Proposals and to decide whether to establish a creditors’ committee comprising representatives of clients and creditors.

In view of the large number of clients and creditors, in accordance with Rule 297 of The Investment Bank Special Administration (England and Wales) Rules 2011, certain statutory documents are being made available electronically. The following documents can be viewed and downloaded from = KPMG UK = (the “Website”) and will be available at this link by 5pm 4th May 2012:

a) The Joint Special Administrators’ Proposals;

b) Formal notice convening the meeting of clients and creditors;

c) Client Asset Claim Form;

d) Client Proxy Form;

e) Creditor’s Statement of Claim Form; and

f) Creditor Proxy Form.

(the “Documents”).

Hard copies are available on request and free of charge. If you wish to receive hard copies of the Documents, please:

a) telephone +44 (0) 20 3284 8829; or

b) email [email protected] ; or

c) write to KPMG LLP, 8 Salisbury Square, London, EC4Y 8BB.

If you wish to vote at the meeting, please return via email or post your completed statement of claim which must be received by 12 noon on 22 May 2012 in order to be counted. Any client who has already responded to a request to agree their balance does not need to resubmit their claim for voting purposes. Any proxies that are intended to be used must be submitted to me by the date of the meeting. Please refer to Appendix 6 of the Joint Special Administrators’ Proposals, being further information regarding the initial meeting of clients and creditors and the voting process, for assistance regarding completion of the relevant claim and proxy form.

The Special Administrators have provided all clients with their statements according to company records. No further statements will be issued prior to the meeting, however, work is ongoing to respond to queries raised by clients in relation to their statements. In the interim period, claimants will be permitted to submit claims on an estimated basis. If you are unable to determine your claim value with any certainty, the Special Administrators request that you submit an estimated claim for voting purposes and submit a formal claim for distribution purposes at a later date.

If you have not yet received your statement please contact the Special Administrators on [email protected] or call 020 3284 8829.

For further information regarding the Documents, please see the frequently asked questions on the Website.

Yours faithfully
For WorldSpreads Limited



Samantha Bewick
Joint Special Administrator

Samantha Bewick and Jane Moriarty were appointed as joint special administrators of Worldspreads Limited on 18 March 2012.

The affairs, business and property of the company are being managed by the joint special administrators who contract as agents of Worldspreads Limited without personal liability.

Samantha Rae Bewick is authorised to act as an insolvency practitioner by the Institute of Chartered Accountants in England and Wales. Jane Bronwen Moriarty is authorised to act as an insolvency practitioner by the Institute of Chartered Accountants in Ireland.

Worldspreads Limited is authorised and regulated by the Financial Services Authority. FSA reference number 230730. Registered in England No. 04898762. Registered office: KPMG LLP, 8 Salisbury Square, London EC4Y 8BB.
 
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