Do clients of the "White labels" and the overseas subsidaries have an equal claim on the assets?.I know that in the case of MF Global there was a big fight between the US and UK administrators because each were only responsible to the clients of their own subsiduary.
It depends on the relationship the White Label and its clients have with Worldspreads.
If the white label has an omnibus account and is the client of Worlspreads Ltd, the FSA will see that White Label as just one client with many sub accounts.
However, if the White Label passes each client through Worldspreads' KYC and they deposit to Worldspreads, each client will be deemed a separate client by the FSA.
I thought Worldspreads leased their platform to Marketspreads. Furthermore, Marketspreads has received very little media attention despite being part of Worldspreads for 6 years.
From Worldspreads disposal document the Company has entered into an information technology service level Agreement ("SLA") under the terms of which the Company will provide the Purchaser on an arm's length basis, a fully serviced trading platform for an agreed fee. The SLA is terminable by the Purchaser at 6 months' notice and by the Company at 12 months' notice;
All the whitelabels are just covers, all whitelabel customers are customers of WS Limited (the FSA uk subsidiary) and are covered the same as any other WS customer
Do clients of the "White labels" and the overseas subsidaries have an equal claim on the assets?.I know that in the case of MF Global there was a big fight between the US and UK administrators because each were only responsible to the clients of their own subsiduary.
ReplyDeleteIt depends on the relationship the White Label and its clients have with Worldspreads.
ReplyDeleteIf the white label has an omnibus account and is the client of Worlspreads Ltd, the FSA will see that White Label as just one client with many sub accounts.
However, if the White Label passes each client through Worldspreads' KYC and they deposit to Worldspreads, each client will be deemed a separate client by the FSA.
Kind Regards,
Adam
I thought Worldspreads leased their platform to Marketspreads. Furthermore, Marketspreads has received very little media attention despite being part of Worldspreads for 6 years.
ReplyDeleteFrom Worldspreads disposal document
the Company has entered into an information technology service level Agreement ("SLA") under the terms of which the Company will provide the Purchaser on an arm's length basis, a fully serviced trading platform for an agreed fee. The SLA is terminable by the Purchaser at 6 months' notice and by the Company at 12 months' notice;
marketspreads moved from the worldspreads platform late last year
DeleteMaybe they took the platform and had an agreement to put in their own liquidity providers as I think they might be regulated in their own right.
ReplyDeleteAll the whitelabels are just covers, all whitelabel customers are customers of WS Limited (the FSA uk subsidiary) and are covered the same as any other WS customer
ReplyDelete