Electronic trading major IG has finally provided some information regarding the stocks it has set to closings only on leverage.
The company notes that it constantly reviews the products it offers in line with client demand. IG has reviewed associated returns across our 12,000 leveraged share markets and decided to withdraw around 900 small-cap shares for spread betting and CFD accounts. These markets will continue to be available for share dealing.
The list of affected shares that will be withdrawn from spread betting and CFD accounts are listed in this file.
IG is increasing margins so that all positions on these shares will have a margin requirement of 100% at 3pm on Friday 26 February. Clients are advised to close positions by Monday 29 March 2021, from which point IG will start to close any remaining open positions.
Traders will still be able to buy the majority of shares outright using IG’s share dealing service.
For a small subset of the affected markets (listed as ‘set 1’ in the file), margin requirements are already at 100%. For the remaining markets (listed as ‘set 2’ in the file), margin requirements will increase to 100% from 3pm (UK time) on Friday 26 February.
IG clients have until Monday 29 March 2021 to close their open positions on affected markets, from which point IG will start to close any positions still open. Positions will be closed as soon as practical from this point. This action is taken in accordance with Term 28(3) of the latest version of the applicable customer agreement governing one’s account(s) with IG.
The company says:
“We encourage you to review your exposure and consider how best to manage your position(s). Should you wish to maintain your existing position(s) with IG in the short term, please ensure that you have enough money on your account(s) to cover the new margin requirements.
We understand that you may need time to decide what to do, or to seek alternative exposure. Nonetheless, we urge you to close your position(s) before Monday 29 March to ensure that you have discretion over the closure”.
Although traders won’t be able to transfer existing leveraged position(s) from a spread betting or CFD account to an IG share dealing account, they can use an IG share dealing account to buy the majority of affected shares outright.
Find out more here.