WorldSpreads update – asset sales, money missing, client list...

Anyone who closely follows the UK financial scene, especially scandals, knows that local reporting on them quickly devolves into rumor mongering and tabloid-like headlines. And the WorldSpreads situation is understandably no different, with headlines such as "ETX rides to the rescue" being thrown around.
There will be no rescue for WorldSpreads clients or shareholders, just a refund of some of clients' money plus whatever the U.K.'s Financial Services Compensation Scheme will cover.
We understand that the following has occurred, is occurring, or is likely to occur:

1) Client Money Missing. WorldSpreads had £29.7 million in client assets on the books, but only £16.6 million in cash as of last weekend. That means that £13.1 million in client money was missing (more actually, as WorldSpreads itself also had cash, but let's ignore that for the time being), meaning that fully 44% (!) of client money was missing. This clearly wasn't misplacement of a little money, it was quite a lot in relative terms for WorldSpreads. Both the FSA and administrator KPMG, along with police investigators, are working quickly to trace exactly where the missing money went, and where (and how, and by whom...).

2) Asset Sales. Again, as per above there will be no overall "rescue" of WorldSpreads, nor a sale of the company. The remaining assets of value which WorldSpreads has (after giving out all cash to clients) are its 5,000-person client list, its trading and back-office systems (software), and then everything else a bankrupt company has – computers, furniture, etc. KPMG has confirmed that the client list will remain confidential and will not be sold. That leaves WorldSpreads' trading systems, for another spreadbetting firm which believes it might be an upgrade to its own, or for a company outside the industry which wants to break in. WorldSpreads' administrators will try to extract maximum value for those assets in order to distribute funds to WorldSpreads' creditors, and that kind of sale can take some time. We'd be surprised if something happens very fast in terms of asset sales.

3) Police Investigation. The WorldSpreads saga is unlikely to end with a quiet whimper and return-of-assets. Again, this was not a few million dollars misplaced from a billions-of-dollars corporation -- this was 44% of client assets! The police are already going about their investigation quietly and rapidly, both to help recover (if possible) and client money and to lay charges of wrongdoing if those are warranted.

4) Former Senior Management. Ex-CFO Niall O'Kelly, who left WorldSpreads about a month before the story broke in mid-February, has remained silent. But ex-CEO (and WorldSpreads' largest individual shareholder) Conor Foley put out a statement that his resignation from WorldSpreads last Wednesday, just 48 hours before the missing client money came to light, was "completely unrelated", and that "the first he learned of these issues (the financial irregularities) was on Friday morning last, at the same time as the rest of the board." We'll just leave it at that.

(Src:Leaprate)

Fees and Timespan for the Administrators-(Various Case Studies)

The reason I am posting this article is so that before you go and decide to get legal advice makes sure that you know what you are letting yourself in for:

Here are some cases:

n October 2006, Christmas hamper firm Farepak collapsed owing £37.1m to more than 119,000 savers. About three years later, the savers are likely to recover 5p in the pound. Administrators BDO Stoy Hayward and their legal advisers have already chalked up fees of £2.3m and the final bill could be about £3m.

In November 2008, music retail chain Zavvi entered administration, and subsequently liquidation, with unsecured creditors owed nearly £185m. These included 510,000 unredeemed vouchers, many bought as Christmas gifts, which at the time of administration were estimated to be worth £4.1m. Creditors are likely to get between 5p and 10p in the pound. Administrators Ernst & Young have collected £3.2m in fees and more will follow.

In January 2009, furniture chain Land of Leather went into administration with debts of £37m. By September 2009, creditors received just 9p in the pound, but administrators Deloitte & Touche have run up fees of £2.5m.

In November 2004, Courts, another furniture chain, went into administration. KPMG has chalked up fees of £24m. Legal and financial advisers collected another £16m.

The administration of Lehman Brothers by PricewaterhouseCoopers (PwC) is expected to run for 20 years. By October 2009, the firm had collected £154m in fees and the final tally could be $4bn (£2.5bn). Senior staff have been charged out at £620 an hour and even the most junior employees have been charged £143 an hour, averaging at £329 an hour.

The insolvency gravy train runs for years. In principle, a creditors' committee is supposed to oversee the insolvency practitioners' work, but many creditors are busy looking for other sources of revenue and cannot invigilate the practitioners. Prolonged insolvencies generate bigger fees. Insolvency practitioners have a prior claim on all cash and must be paid before creditors. Some 20,721 liquidations that commenced more than 10 years ago have not been finalised of which, 17,058 commenced more than 15 years ago.

The Bank of Credit and Commerce International (BCCI) liquidation started in July 1991 and still is not finalised. Liquidators and advisers led by Deloitte have charged more than £400m. Israel-British Bank entered liquidation in July 1974. It was finalised by PwC in September of this year. 1n 1974, Apal Travel went into liquidation. Hacker Young finalised the liquidation this August and paid out 74p in the pound to holidaymakers. Some probably died in the intervening 35 years. The firm blamed the delay on the time taken to complete the Israel-British Bank liquidation, which it said had a knock-on effect.

The UK insolvency regulation has failed. All insolvency work is handled by 1,600 licensed practitioners, mostly working in accountancy firms. This statutory monopoly is a licence to print money. The practitioners are regulated by accountancy and law professional bodies, which have no independence from the firms they regulate. They are unfit to perform regulatory functions. The complaints rate has soared to 78% in some cases, but hardly anyone is banned or investigated. Regulators are adept at sweeping things under their dust-laden carpets. There is no independent complaints investigation procedure or independent ombudsman to adjudicate on malpractices. No questions are asked about exorbitant fees, or excessive delays. They don't owe a "duty of care" to anyone affected by their failures. This edifice is overseen by the Insolvency Service, which itself is populated by personnel from accountancy and law firms.

Ernst & Young audited Farepak and BDO Stoy Hayward became administrator. Lehman Brothers was audited by Ernst & Young and PwC earns fees as administrator. BCCI was audited by Price Waterhouse (now part of PricewaterhouseCoopers) and Deloitte is collecting millions in fees as liquidator. BDO Stoy Hayward audited Keydata Investment Services and PwC is raking in fees as administrator.

A favourite excuse for prolonged insolvencies is that the affairs of the bankrupt business were complex. Of course, the same accountancy and law firms fail to acknowledge their own role in creating complex and opaque transactions. If the affairs of the failed companies are complex, how did the auditors manage to give them a clean bill of health? Auditors' files could provide some clues but auditing firms, the ones who also act as administrators, don't want to hand their files to administrators and liquidators. So the insolvency merry-go-round continues to produce lucrative fees.

Src(Grd)

Client Money Rules of the Financial Services Authority

The Financial Services Authority is a United Kingdom organization responsible for overseeing the business activities of all businesses and institutions involved in banking and investment in that country. The Financial Services Authority (FSA) publishes handbooks containing its rules for the conduct of specific business activities, and the Client Asset (CASS) handbook contains rules on the use and treatment of client money by businesses temporarily holding money on behalf of their clients.

Interest

Chapter seven of the FSA Client Asset handbook states in section 7.2.14 that a firm holding client money must pay the client all the interest earned on the money while the firm held it for the client. The exception, as stated in section 7.2.14, is a written agreement with the client stating whether or not interest is to be paid on client money, and if so, how often it must be paid, and the terms of interest calculation.

Depositing Client Money

When a firm receives money that it is to hold on behalf of a client, the firm must deposit the money into one of several financial institutions as soon as possible. According to CASS 7.4.1, these institutions include a central bank, an authorized bank in another country and a BCD (Banking Consolidation Directive) credit institution. A credit institution receives deposits from the public or other businesses and issues credits against those deposits, which it then invests.The credit institution then assumes the risk and guarantees the client money. Client money can also be deposited in a money market fund, but client money deposited in a money market fund is then governed by the FSA custody rules, and not the FSA client money rules. Client money deposited in money market funds is not guaranteed, as money market investments, although considered to be low-risk investments, can decrease in value depending on factors such as interest rate fluctuations.


Primary Pooling

Typically, a firm holding client money will place the money in one of two types of accounts, a general client bank account, or a designated client bank account. CASS 7A.2.1 states that clients with money held in a general client account do not have a call against the money in a specific account, but clients with money in a designated account have a call against their specific sums of money in specific accounts. When the firm holding the client money fails, a "primary pooling event" occurs. When a primary pooling event takes place, monies held in general client bank accounts and designated client bank accounts are considered pooled, and all clients have a claim against the pooled fund. The firm's administrators, overseeing the insolvency of the firm, are responsible for the distribution of the pooled money.

Here is the FSA Handbook link to  CASS 7.
http://fsahandbook.info/FSA/html/handbook/CASS/7
Source FSA

Kind Regards
Rav

Worldspreads Group (UK B2357Y8) will be deleted at 0p.

REG - FTSE - Worldspreads Group PLC

* Reuters is not responsible for the content in this press release.

Mon Mar 26, 2012 12:01pm EDT

RNS Number : 1042A

FTSE

26 March 2012

 

Worldspreads Group PLC (UK): Appointment of Administrators Changes In FTSE Indices 26 March 2012 Following the appointment of administrators to Worldspreads Group PLC (UK), FTSE announces the following change: INDEX CHANGE EFFECTIVE FROM START OF TRADING FTSE AIM All-Share Worldspreads Group (UK B2357Y8) will be deleted at 0p. 29 March 2012

Will KPMG Post a list of all Worldspreads clients with the amount owed and their addresses?

From my understanding this may have happened to  MFglobal clients, but this is for traders
that fall in the professional category or institutional clients.
If you had a segregated account(!!! I know what the comments will be),
Your details should not be published as part of the administration process.

I have sent an email to KPMG regarding this already and will update this post if I hear anything different.

Kind Regards

Rav

False worldspreads claim calls..

Dear all,

Please be aware of any bogus calls you get from brokers or spread betting firms or claim companies that they can get your money back from the administrators earlier than time.
Currently we have to work to the deadlines i.e. the 10 weeks that KPMG have been given to present a solution and their findings.

PLEASE EMAIL ME WITH PHONE NUMBERS AND COMPANY NAMES IF THIS IS THE CASE.
I SHALL CONTACT THEM DIRECTLY AND REPORT THEM TO THE NECCESSARY AUTHORITIES

Kind regards

Rav

Just more and more bad news for Spreadbetting firms ?

The former banker founded internet securities dealer CMC Markets in 1989.
According to the company's website it deals with over 26 million trades each year. It has an estimated worth of £1.25 billion.

Mr Cruddas, who is 90th in The Sunday Times Rich List, has amassed a £750 million fortune. In 2006 he was described as the richest man in the City.

Conservative Party co-treasurer Peter Cruddas offered access to the prime minister and chancellor for £250,000, the Sunday Times has alleged.

It has recorded footage which shows him apparently making the offer to undercover reporters.

London-based Mr Cruddas was appointed Tory co-treasurer in June 2011 and is the founder of online trading company Currency Management Consultants Ltd.
...
"Two hundred grand to 250 is Premier League… what you would get is, when we talk about your donations the first thing we want to do is get you at the Cameron/Osborne dinners," he says.

Src:(BBC )

Weekly update on the Worldspreads Heist

Dear all,
One week has now completed after our funds have disappeared into thin air.
How do I feel on a personal level almost the same as all of you disgusted that we
Have been left hanging in an emotion of hope. What else can we do at this point?

I have sent 2 emails now to kpmg on behalf of us all saying in an ten week process
Should you not at least give us a weekly update of what is going on?
There is no point making phone calls to them as they have a standard script which
they abide to hence I have voiced my opinions further up.

All those clients at Worldspreads that have lost below £50,000 please note your funds are safe.
All those clients at Worldspreads have lost below £100,000 will also probably be safe and this is my opinion after doing some maths.
Anyone above it we will have to just wait and see what comes of the distribution of the Funds left.
I don’t see any point in trying to start a legal battle until we get some kind of statement of findings from Kpmg as this is what they are paid to do so we should be patient and wait for the day.
We have heard that that the Worldspreads Platform has been sold to ETX for a figure of around £460,000 so let’s see what else Kpmg can salvage for us.
I totally understand the frustration of most of the clients and can only try and help you by responding to your questions. The horror stories just get worse as a result of “The heist”.
Daily incomes of full time traders on hold, faith on managed account traders has been lost, clients that have had their long term positions for over 6-7 months have made some massive losses, Partners have split up.. this list goes on...
My deepest sympathy to all those that have been affected.
Right now we have no option but to be patient and wait for KPMG to give us a statement.
KPMG is obliged to make a report of their findings in 10 weeks – the first week of June – which will detail the likeliest outcome for creditors. 
The question regarding open positions, the positions have been closed and a loss will be a loss and a profit will be a profit as per close of trading on the 16th of march there is nothing at all that can be done due to the terms and conditions in the agreement between you "The Client " and "Worldspreads"
(I guess now it is time to review all the spread betting agreements and make sure we know where we stand)
A lot of clients who have had accounts in Europe have the same question, regarding their funds i.e.  Are they protected and the answer is yes they are up to £50,000.00
 Other than this I will keep you updated on any responses from FSA, FSCS and KPMG
 Kind regards
Rav
Thank you for all your support in distributing this blog to the thousands of Worldspreads clients who have been affected by this Financial Catastrophe.

Fianna Fail, Anglo insiders hit by Worldspreads scandal

The collapse of spread betting firm Worldspreads has hit Fianna Fail. Not only is former Finance Minister Charlie McCreevy a board member of the crippled firm, but many Fianna Fail TDs have also been shareholders.
Former Kildare Fianna Fail TD Sean Power is listed as owning 199,134 shares, which were worth as much as €272,000 at its peak in 2008. Those shares are all but worthless now. Ex-Galway TD Frank Fahey held shares until 2008.
Anglo Irish Bank (now IBRC) director Roger McGreal is listed in the shareholders' register as owning 68,750 shares, which were worth close to €94,000 at the peak of the market. Jurys Doyle squillionaire Eileen Monahan and her husband Ray are also major shareholders, with a combined block of 371,000 shares once valued at €509,000.
Property tycoon John Byrne's Carlisle Trust has 300,000 shares, once worth up to €411,000. The Durkan Homes family are also sizeable shareholders, with Liam Durkan listed as owning 649,579 shares once worth €890,000, Neil Durkan has a stake once worth €1.24m with William Durkan having a massive 1.63 million shares, valued at €2.24m during the boom.
Those shares were worth €667,000 before trading was suspended and are unlikely to be actually worth anything like that as potential buyers pick over the carcass of the company.
A large number of well known investors were once shareholders but have sold out in recent years, these include golfer Paul McGinley and his agent Andrew 'Chubby' Chandler, former Republic of Ireland football star Keith O'Neill, former Manchester United and Danish international Jesper Olsen, and Shane Cooke, president of drug company Alkermes.
KPMG was appointed as administrator to Worldspreads when it emerged that up to €16m in clients' money had gone missing. The UK's Financial Services Authority is conducting an investigation.
SRC Irish Times

LBGL is offering to pay Ladbrokes customers who wish to withdraw their money from WorldSpreads

As you will be aware, on 18th March 2012, WorldSpreads Limited (“WorldSpreads”) entered administration.

Ladbrokes appreciates the uncertainty that this may cause for many of our customers, in particular those who made use of the products provided by Worldspreads. This email sets out Ladbrokes’ proposals for ensuring that its customers’ funds are protected as best as possible in these circumstances.

Financial Spread Betting on the Ladbrokes website was provided by WorldSpreads, which is authorised by the FSA with reference number 230730. Ladbrokes Betting and Gaming Limited (“LBGL”) introduced customers to WorldSpreads as its appointed representative under the Financial Services Act 2000.

Balances held for spread betting customers through the Financial Spread Betting section of the Ladbrokes Website (“WorldSpreads Balances”) are held with WorldSpreads; and customers’ rights, and any associated claims in respect of their WorldSpreads accounts, are rights and claims against WorldSpreads, not LBGL or any of its affiliates. Since WorldSpreads has entered administration, spread betting customers will not be able to withdraw their funds from WorldSpreads for the foreseeable future and may not ultimately receive the whole amount owed to them.

However due to the current uncertainty, LBGL is offering to pay Ladbrokes customers who wish to withdraw their money from WorldSpreads, and who agree to the terms below, an amount equal to the whole of those balances.

If you wish to accept this offer and receive payment of the full amount of your WorldSpreads Balance now, rather than waiting for the outcome of the WorldSpreads administration process, please reply to this message with the word “Accept”.

Terms and Conditions

By doing so, in consideration for the payment to you by Ladbrokes Betting and Gaming Limited of an amount equal to the whole of your WorldSpreads Balance:

1.       you agree to assign to LBGL or its designated affiliate all your rights, title and interest in, and the benefit of, your Financial Spread Betting account with WorldSpreads, together with your rights under any associated trust over or in relation to that account, all claims arising in relation to that account (or any associated trust) and all right, title and interest in, and claims arising from, the associated WorldSpreads Balance (together the “Account Rights”);

2.       you irrevocably appoint LBGL as your agent (a) to bring any claim in relation to, or arising from, your Account Rights, in your name and on your behalf (whether against WorldSpreads or otherwise), and (b) to execute an assignment in favour of LBGL or its designated affiliate of your Account Rights and you agree to make no claim against WorldSpreads or otherwise in relation to your Account Rights; and

3.       you agree to execute any deed or other document we may request in order to perfect the assignment and/or appointment referred to above and, on request, to grant power of attorney to LBGL to execute any deed or other document in relation to your Account Rights.

WORLDSPREADS’ WOES

THE downfall of spread ­better WorldSpreads stemmed from problems reaching back several years.

Barriers between client funds and those used by the company for its own account were first breached at least three years ago, according to sources close to the ­matter. However there is no evidence yet whether the breaches were systemic and there is a case to answer, the sources added. 

(SRC Express)

Worldspreads Group - Nomad Resignation

WorldSpreads Group plc

("WorldSpreads (Irish: A0MXL9.IR - news) " or the "Company")

Nomad Resignation

Further to the announcement on 23 March 2012 regarding the appointment of a receiver to Worldspreads, Collins Stewart (Other OTC: COLLF.PK - news) 's engagement as Nominated Adviser and Broker to WorldSpreads was terminated with immediate effect.

Pursuant to AIM Rule 1, if a replacement Nominated Adviser is not appointed within one month, the Exchange may cancel the admission of the Company's securities. Accordingly the potential cancellation time and date is 7.00am on 23 April 2012.

For further information, please contact:

WorldSpreads Group plc

Lindsay McNeile, Executive Chairman

Dominic Bacon, General Counsel

+44 (0)20 7398 5100

BDO LLP

Jim Hamilton, Receiver appointed to Worldspreads Group plc

+353 (0) 1 470 000

Collins Stewart Europe Limited

Mark Dickenson

+44 20 7523 8350

Dublin branded Sports Circle

According to the Irish Times in a report published Thursday, the founder and former chief exec of disgraced financial spreadbetting company Worldspreads  Conor Foley has other irons in the gambling industry fire.
The newspaper reports that Foley is the biggest shareholder (reportedly with 80 percent) in a recently established high-end bookmaking business based in Dublin branded Sports Circle. The new enterprise is apparently focused on high-rolling sports punters.
Company documents show that Foley holds the entire issued share capital of ISH Hedging and Trading, which in turn owns 80 percent of the Sporting Circle.
And Conall McSorley, Worldspreads former business development manager, holds the other 20 percent.
Sporting Circle began trading just under a year ago, and operates as a members club which offers both deposit and credit sports betting to clients, from whom it pledges to take substantial bets.
According to its website, McSorley founded the business and it is backed by substantial business figures from Dublin and London.
Meanwhile, Worldspreads is now in the charge of joint special administrators Jane Moriarty and Samantha Bewick of KPMG, who were appointed by Britain’s Financial Services Authority this week.
Their immediate focus will be to retrieve client funds and ensure that customers are repaid. They will also examine directors’ conduct and the circumstances of the collapse. Initial soundings of the business indicate that it only partially hedged its risks.

Market Rumours-ETX have purchased the Worldspreads Platform

There is a rumour in the market that ETX have purchased the Worldspreads Platform for £500,000 and have also offered to take over the IT team at Worldspreads.

The main reasons for this are that ETX have been using third party platforms till now and i guess what better way to buy a costly technology at discount.

I have heard this from my own reliable sources when I have further confirmation I shall the change the post to Factual.

Kind regards
Rav

WorldSpreads shareholders set to lose out

A receiver has been appointed to the Irish-based financial spread betting company WorldSpreads Group , following the appointment of administrators to its main business last week.
Trading in the company's shares was suspended last week, and a statement from WorldSpreads today said it was not anticipated that there would be any return to its shareholders following the receiver's appointment.
Earlier this week, sources confirmed to RTÉ that the City of London Police was being asked by Britain's Financial Services Authority to investigate alleged financial irregularities at WorldSpreads.
WorldSpreads Limited entered administration last weekend following suspected misuse of client funds. KPMG has been appointed as administrator and has warned there is likely to be a shortfall to creditors.
KPMG said there would be no actual sale of the business, which is in the process of being closed down, but some of WorldSpreads' software and data centre assets could be sold.
WorldSpreads suspended its shares last week after discovering possible "financial irregularities" in its accounts. It also said it owed clients millions of pounds.
WorldSpreads said its directors believed that, as of the close of business on March 16, there was a shortfall of around £13m sterling of client money.

Source : RTE

RNS Number : 9895Z

Worldspreads Group PLC

23 March 2012

 



WorldSpreads Group plc

("WorldSpreads" or the "Company")

Appointment of Receiver

Further to the announcement on 19 March 2012 regarding the appointment of joint special administrators to Worldspreads Limited, the Company's principal trading subsidiary, and the directors of Worldspreads having invited the secured lender to appoint a receiver, the Company's secured lender has appointed a receiver to the assets and undertaking of the Company (the "Receiver"). 

It is not anticipated that there will be any return to the Company's shareholders following the appointment of the Receiver.

For further information, please contact:

WorldSpreads Group plc

Lindsay McNeile, Executive Chairman

Dominic Bacon, General Counsel

+44 (0)20 7398 5100

Collins Stewart Europe Limited

Mark Dickenson

+44 20 7523 8350

About WorldSpreads Group plc

WorldSpreads Group plc (AIM: WSPR) is a financial services group that offered online and telephone trading.  The Group's core activity was the provision of spread betting products on the financial markets to retail clients from its website www.worldspreads.com.

WorldSpreads Limited, a wholly-owned subsidiary of the Company, is regulated and authorised by the Financial Services Authority.

WorldSpreads Group plc floated on the London Stock Exchange's AIM market in August 2007 and gained a dual listing by joining what is now the Irish Stock Exchange's Enterprise Securities Market ("ESM") in May 2008.

Regards Rav

Update on worldspreads

We have received official word from the administrators. We will be releasing a statement soon in regards to client funds and what we need to return funds to clients, we will be putting the details on the Worldspreads website.

Regards
Rav

No update from KPMG creating frustration amongs worldspreads clients

Good Morning All,

I am afraid we are no further with the Special Administration Team.
We have phoned them today in the morning and have asked the
Questions that are asked by my most of the clients:

Q. Do you have any update on the situation with Worldspreads?
Nothing at all.

Q.Do you have any ideas about the Claim forms and when they will be issued?
Nothing at all.

Q.Do you have any ideas on approximate timescales?
Nothing at all.

Something that I am failing to understand is that why don’t they at least start to send us the clients the claim forms so that we can all fill them out and save time on administration. I cannot understand how different a form would be then those used for all the other insolvencies.
This could save so much time! I am pretty much sure that at least 80% of the forms would be sent back within 2 weeks.

A Very frustrating time for clients, who have lost money due to no reason of their own.

Please be patient with me as soon as I have any updates and here the first word
Rest assured it will be on this blog.

Once again thank you for your support.
Regards
Rav

Worldspreads Client List been Leaked !!!!

I am absolutely fuming about clients getting calls from different Spreadbetting companies all of a sudden since 17:00 this evening. I have had numerous complaints that Worldspreads clients are getting contacted to open a spread betting account.

They are making false claims that they will help the clients get the money back from the FSCS earlier than anticipated if they open an account with themselves.

A NOTE PLEASE DO NOT FALL IN THE TRAP OF THESE UNHEALTHY Spread Betting companies
I will start name and shame of these Spread Betting companies if this continues.

Please could i ask that comments naming companies and individuals not be posted directly onto this blog as this could lead to legal action being taken for defamation of character.Please email me first your comment so i may ensure that legal requirements are met!

Kind regards
Rav

The white Label Agreements

An update on the section that says it all for Open Positions for Worldspreads

THE OPEN POSITIONS CLAUSE:

6.9 In the event of any of the following, WS reserves the right (but is not obliged) to close any or all, in whole or in part, of your open bets (including those
held on a joint account with others) on the basis of WS’ current (or next available) market quotation, to exercise its rights of combination consolidation and
set off hereunder, to close your account and not accept any further bets from you, in each case with or without notice to you, and such closure will
generally (but not always) be carried out by WS at either 12.00 noon or 16.00 on the day in question, but it reserves the right to effect closures at any
time:
(i) if any method of payment employed by you to make payment to WS is not met on first presentation or is subsequently dishonoured;
(ii) if Variation Margin is due and you fail to pay such Variation Margin in full within three Business days of becoming due or in accordance with the relevant
timescales as set out in clause 6.5 and 6.6 as the case may be;
(iii) if, in the case of Credit Account holders, the amount of Variation Margin due exceeds three times your Credit Allocation, or, in the case of Deposit
Account holders, the amount of Variation Margin due exceeds three times your Account Balance;
(iv) if WS considers, in its absolute discretion, that you are unlikely to meet any Variation Margin payment or any other payment when due;
(v) if WS considers, in its absolute discretion, that you have materially breached any of the clauses contained within this Customer Agreement as may be
amended from time to time;
(vi) if any representation or warranty made by you in relation to this Customer Agreement is found to be, or becomes, untrue, inaccurate or misleading in
any respect;
(vii) if you become the subject of an Insolvency Event;
(viii) if you should die, be committed as a patient under relevant mental health legislation or any court order is made in respect of you under relevant
mental health legislation or WS suspects or believes the same to be true;
(ix) if we are in dispute in relation to any order, bet or instruction, save that in such case we may close all but not part only of the actual or alleged bet in
dispute whether or not such action is considered desirable for minimising the amount in dispute;
(x) if there occurs any other event or any other circumstance exists, where we reasonably believe that it is necessary or desirable to take any of the above
actions in order to protect ourselves or any or all of our other clients;
(xi) if any regulatory body of WS’ business, or the rules of such a body, require WS to do all or any of the foregoing.
WS reserve the right to exercise all or any of the rights referred to in this clause 6.9 upon or at any time after the occurrence of any of the events therein
referred to and regardless of when the underlying market may close.

The problem we have when we open account is that we dont read the actual contract as we do not expect this to happen to us. Worldspreads have every angle covered for open positions but am talks with a legal rep today so lets see what progress I make.

Kind Regards
Rav