Dear all,
I have made some calls and am awaiting to find out if there is any truth in the ETX Rumour.
Personally having been in the markets this long.IF IG and London Capital Group have pulled
out of this very cleanly, I cant see anyone else touching world spreads...but we should know a
bit more by 18:00 today
I have heard nothing from my source suggesting anything about Andrew Edwards even considering this,So at this point it is just a rumour.
This is the link to the rumour
ETX Rumour
Regards
Rav
It would be interesting to see if any other brokers do actually look to purchase WorldSpreads. The value depends on what type of client base they had; institutional and white labels would have value, though a UK based retail client base would have little. This is because the majority of retail clients will have multiple trading accounts and will use one of their other brokers.
ReplyDeleteEach hour that the markets are open the WorldSpread client base will reduce in value as the traders will open with other FSA regulated brokers. I know that here at Abshire-Smith we have already had enquiries from clients of WorldSpreads looking for alternatives.
Joe,
ReplyDeleteI think it would depend largely on how the firm buying the WS operation was planning on running WS in the future. In the past, when one firm has aquired another, all clients were simply absorbed into the common trading platform. Clearly, in the past, WS has been profitable and therefore there is scope for some interest but only if WS was still run as a standalone label.
If a firm was simply buying a client base then I'd pretty much agree with most of what you've written - there is little value given the £13 million shortfall.
Steve S
I agree Steve. In my opinion if a company was to merge WS with their own platform without losing a substantial amount of the WS accounts would be to move all positions and funds asap. For this to happen there would need to be co-operation by the administrators and the would be 'buyer'.
ReplyDeleteIf WS was bought and operated as as a stand alone brand, depending how quickly this is resolved would have a huge impact on any client retention.
Joe Bond (@Joe_Trading)
Abshire-Smith.com
Also, it would be interesting to know if Worldspreads have any sizeable partnerships such as White Labels that make up a large % of their trading volume/profit (eg Victor Chandler), if so you’d ideally take such clients as it would prove much easier to integrate (assuming commercial terms could remain similar). For example take 20% of the clients that make 80% of the volume/profit.
ReplyDeleteJust my 2 cents anyways.
Joe Bond (@Joe_Trading)