Worldspreads Group Discussion Board http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion http://www.iii.co.uk/icons/logos/uk_logo.gif http://www.iii.co.uk tag:iii.co.uk,2003:tst.9505089
Now completed the valuation stage of The Great Irish Share Valuation Project. Just posted Part X, and also a Q1 performance Review post (which includes some brief Worldspreads comments):

http://wexboy.wordpress.com/

Cheers,

Wexboy By Wexboy ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9505089&action=detail Wed, 04 Apr 2012 06:06:00 GMT Wexboy tag:iii.co.uk,2003:tst.9455805
http://worldspreadsheist.blogspot.co.uk/ By RIG Amortis ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9455805&action=detail Tue, 20 Mar 2012 15:19:00 GMT RIG Amortis tag:iii.co.uk,2003:tst.9455163
Faced with two Irish company scandals (Worldspreads & Siteserv) in a single day, I had to write this:

http://wexboy.wordpress.com/2012/03/20/youve-got-to-pick-a-pocket-or-two-2/

Any transaction with ETX is v touch and go, in my opinion, they might pay a knock-down price for some technology - but I don't expect anybody will 'buy' the clients (on the expectation they will quit/scale down their trading, or migrate to the biggest player(s)). I certainly wouldn't expect them to pay a price anywhere near the size of the black hole here.

Wexboy By Wexboy ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9455163&action=detail Tue, 20 Mar 2012 13:27:00 GMT Wexboy tag:iii.co.uk,2003:tst.9454059
if you follow the naked Trader he's going through all this with MF at the moment.

By Back_Sack_N_Crack ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9454059&action=detail Tue, 20 Mar 2012 10:14:00 GMT Back_Sack_N_Crack tag:iii.co.uk,2003:tst.9450979 http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9450979&action=detail Mon, 19 Mar 2012 16:35:00 GMT Scarmonger tag:iii.co.uk,2003:tst.9450816 look like re spreadbet accounts [ not re share owners !! ] links will be up on thw ebsite within 48 hrs to prove your claim

bit difficult really - if the y closed you out @ any point after Fri close as they wouldnt transmit the detail to you. So assuming closed all positions as at Fri night, then ones claim would be per the account valuation on the final statement received......this i guess would need to claimed to KPMG to prove up the balances due !!!, and likewise to be able to claim via FSA- if applicable

they were a white lable site... who else was a white label offeror of WS, as they may well be in trouble also ? By Profitonly ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9450816&action=detail Mon, 19 Mar 2012 15:58:00 GMT Profitonly tag:iii.co.uk,2003:tst.9450558
However, as mentioned in earlier post, the administrators have already closed out all positions - it's only a question now of whether our cash is safe.
By doctorh ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9450558&action=detail Mon, 19 Mar 2012 15:26:00 GMT doctorh tag:iii.co.uk,2003:tst.9450395
Sorry to say I'm in the same boat.

I left my Worldspreads internet access open yesterday and was able to see that all positions had been closed around 6pm at the prevailing bid price (They email a weekly statement, whatever your position was then is what you would have been closed at)

So whatever positions you previously had are no more - your claim against them will now be the net value of you account after all these are closed out.

I hope for your sake that your net value is under £50k - if so you will eventually receive all of your money back via the Financial Services Compensation Scheme. Anything in excess of £50k (mine is a few pounds over, unfortunately!) is likely to be decimated and you may get a few pence in the pound when the who sorry state of affairs is eventually wound up.

I am hopeful that the persons responsible are brought to account and that the misery inflicted by others is passed onto them - it would be a travesty if they escaped personal liability. Their simple task was to ensure the segregation of client money and I hope the same principle will be applied with the debts of their business being offset against their own personal wealth.

If I was Mr Foley & Co I would be afraid....very afraid!

By doctorh ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9450395&action=detail Mon, 19 Mar 2012 15:04:00 GMT doctorh tag:iii.co.uk,2003:tst.9450171 Could anyone enlighten me on where I stand. I have numerous positions opened in the ft250/350 companies mainly in profit and some funds ,valuation in the £0000's but like the 5000 or so clients I cannot get access to monies nor the positions.what happens to our position and monies is it all gone? I am very distress by the whole thing that Foley has lot to answer for. The frustrating thing is my companies are going up again today any advice appreciated
Contacted Fsa and says to contact the special admin at Kmpg but unable to get through By Scarmonger ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9450171&action=detail Mon, 19 Mar 2012 14:29:00 GMT Scarmonger tag:iii.co.uk,2003:tst.9449128 ')" target="_new" rel="nofollow">http://www.thisislondon.co.uk/business/business-news/etx-rides-to-the-rescue-as-worldspreads-faces-shortfall-7577035.html

ETX Capital is in exclusive talks to acquire collapsed spread betting rival WorldSpreads.

Talks have been ongoing over the weekend and a deal is likely to be announced within the next 24 hours, it is understood.

Although the details are still being finalised, bankers say ETX is likely to have a particular interest in WorldSpreads client base and its technology platform.The news comes as WorldSpreads confirmed this morning that KPMG has been appointed as special administrators - the accountants will now make all business decisions at the firm while it is wound up.

Following an internal investigation, the firm said on Friday that it was suddenly “unable” to assess its own finances following the discovery of “possible financial irregularities”.

Around 5000 customers of WorldSpreads are facing losses of £13 million after the beleaguered spread betting house today admitted to a “shortfall of client money”.

WorldSpreads believes that it owes clients £29.7 million but only has cash balances of £16.6 million.

The shares were suspended on Friday.

That move followed the abrupt departure of chief executive Conor Foley last week. Chief financial officer Niall O’Kelly has also gone. It is he at which WorldSpreads seems to be pointing the finger, noting that the irregularities emerged within a day of his departure.

Chairman Lindsay McNeile had previously denied there was anything problematic ongoing at the firm, denying rumours that had been sweeping the City for at least a week.

McNeile, an Eton-educated raconteur, said last week that Foley has moved on because he had other “entrepreneurial” interests to pursue.

WorldSpreads is plainly up for sale should a rescue deal be available. It is thought that some firms, including IG Group, have already taken a look and ruled out an approach.

The matter is bound to attract the further attention of the Financial Services Authority. The regulator says customers should contact the special administrators on 0203 284 8829 for more information. There is considerable interest in the City at the identity of those on the WorldSpreads creditor list.

They are likely to include some big names from within the spread-betting community, a tight knit group that sees many clients have accounts with rivals firms.

Neither ETX nor WorldSpreads would comment on any discussions. For the rest of the spread betting industry this scandal will be viewed dimly.

Spread betting had a patchy reputation in the past, based on several cases that saw client money and firm money becoming jumbled. In recent years it has become far more respectable and has grown in size as more and more clients found it an attractive way to invest. By RIG Amortis ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9449128&action=detail Mon, 19 Mar 2012 11:05:00 GMT RIG Amortis tag:iii.co.uk,2003:tst.9447042
I do hope you manage to get a good majority back. I have added you to my Fav's and will follow your progress with great interest.

All the Best from Portsmouth By singen smithe ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9447042&action=detail Sun, 18 Mar 2012 21:28:00 GMT singen smithe tag:iii.co.uk,2003:tst.9447034
I don't know if anyone is in a similar position but I obviously will be investigating what the options are in terms of creditor claims etc. My hopes aren't high though! By doctorh ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9447034&action=detail Sun, 18 Mar 2012 21:23:00 GMT doctorh tag:iii.co.uk,2003:tst.9447019 http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9447019&action=detail Sun, 18 Mar 2012 21:17:00 GMT singen smithe tag:iii.co.uk,2003:tst.9446972
Would you all excuse me for a moment whilst I let out a short, sharp,

AAAAAAARRRRRRRGGGGGHHHHHHH!!!!!!

After all, it's not every day I drop a six figure sum... hang on..

AAAAAAARRRRRRRGGGGGHHHHHHH!!!!!!

Thanks, that's better!

Now before anyone lectures me on the folly of trading GKP, can I just point out that I had simply adopted a strategy to swerve a bit of CGT by supplementing my main holding of physical stock with a spread bet position, fully backed with cash deposits to avoid getting stopped out.

That has been closed this evening at 260.35p. Quite apart from loss of potential GKP paper profit, and a position from 140p that is impossible to rebuild, I am facing a loss of most of the cash I deposited - now only looking at an eventual £50k FSA compensation which will no doubt take a lot longer than the GKP timeframe of events are likely to unfold.

I am also wondering how much Worldspreads are themselves exposed to GKP. I understand they cover their net position in the market, and I am also assuming the majority of clients are long. All my positions have been closed out today which I presume means when the market opens tomorrow there may be some big sales going through on Monday.

Just for once I am actually hoping that we DON'T wake up to a big GKP RNS tomorrow...

a very p155ed off doctorh By doctorh ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9446972&action=detail Sun, 18 Mar 2012 21:03:00 GMT doctorh tag:iii.co.uk,2003:tst.9446916
Shares in the company were suspended on Friday after WorldSpreads informed regulators of accounting irregularities. People with knowledge of the matter said that money from client accounts, which should be segregated, had been mixed with the company’s own funds.

The board of WorldSpreads was set to make an application to the High Court for an administration order on Sunday, and the insolvency proceedings will be announced formally on Monday, sources close to the situation said. The shortfall in the client funds is estimated at between £10m and £12m.

Some people close to the process had suggested on Friday that a takeover of the company, through a so-called “pre-pack administration”, might be negotiated over the weekend. IG Group and London Capital Group were among the companies mooted as potential bidders. However, both companies decided not to pursue an acquisition.

WorldSpreads, founded in Ireland in 2000, listed on London’s Aim market in 2007. Its insolvency will be managed by KPMG under the Financial Services Authority’s new special administration regime, designed to ensure a faster insolvency process for financial groups.

However, it raises the prospect of a lengthy legal struggle as nearly 5,000 clients of WorldSpreads try to recover the funds they deposited with the company. The first £50,000 of each account is protected under the Financial Services Compensation Scheme, but clients owed larger sums – a group likely to include some other spread betting companies – may not receive the full value of their accounts.

The situation will draw comparisons with the insolvency of MF Global, the US brokerage which failed to segregate clients’ money as required by law. UK clients have criticised the handling of the insolvency by the FSA and KPMG, administrator to the brokerage’s UK arm, arguing that clients in other countries have had money returned more quickly.

It is also likely to prompt criticism of Ernst & Young, WorldSpreads’ auditor, for signing off on annual accounts at a time when the alleged fraud was being carried out. E&Y said it could not comment for confidentiality reasons.

The accounting irregularities were discovered on Friday morning, as the company’s new executive team inspected its accounts, according to Lindsay McNeile, chairman of WorldSpreads. Two days previously, Conor Foley, chief executive, and Niall O’Kelly, financial director, had left the company with immediate effect. Neither has been accused of any wrongdoing.

Mr McNeile, who assumed an executive role on Wednesday, said that the discovery had “hit us with enormous force in a dark tunnel”. Among the company’s non-executive directors is Charlie McCreevy, a former Irish finance minister and European Commissioner, who joined the board in June last year. Mr McCreevy could not be reached for comment. By Jay111s ]]> http://www.iii.co.uk/investment/detail?code=cotn:WSPR.L&display=discussion&id=9446916&action=detail Sun, 18 Mar 2012 20:43:00 GMT Jay111s