IG Index dispute - advice welcome!

This is a discussion on IG Index dispute - advice welcome! within the Spread Betting & CFDs forums, part of the Commercial category; Yes that seems reasonable to me... OP got lucky...

Reply
 
LinkBack Thread Tools Search this Thread
Old Mar 24, 2011, 7:09pm   #73
 
arabianights's Avatar
Joined Jan 2007
Re: IG Index dispute - advice welcome!

Yes that seems reasonable to me... OP got lucky
__________________
World's leading STIRs chatroom - www.propboards.com - register, then click on chat. Don't let the lack of posts on the forum put you off - the action happens in the chatroom. Targeted at locals, but hedge funds, brokers (including IDBs), market makers, and a few sizable amateurs are all represented. When it's quiet, banter is encouraged and anything goes.

No nuisance spread betters please. Anyone else welcome.
arabianights is offline   Reply With Quote
Old Mar 24, 2011, 11:41pm   #74
Joined Mar 2011
Re: Email from Igindex

defender110 started this thread
Quote:
Originally Posted by tar View Post
I emailed the dealing desk and i asked them about this matter and here is their response , which is more than fair , i didnt know that the futures market wasnt trading at the time ...

"Dear Sir

Thank you for your email. Please let me provide the context to our decision to suspend trading on our Japan 225 (Nikkei) markets last Wednesday evening. Firstly, the most important thing to note is that at the time we were acting as market makers because no futures markets were trading. We were making our price according to the volatility seen in other markets and client business that we were seeing. I am sure that you are already aware, but to expand on this further, USD/JPY had just dropped 3.5% in a matter of minutes. There was also news emerging from Japan that the Government would intervene imminently in order to try and weaken the Yen, and rumours that the Nikkei would not reopen as scheduled.

With all this in mind, we felt we had no option but to stop making a price for the short period until we could establish a firm market price when the underlying futures market opened. I am afraid that during this period we were unable to quote prices either online or over the phone to open new bets or close any that were existing. We resumed quoting as soon as we possibly could, around 30 minutes later.

Please understand that these circumstances were very unusual as market conditions of this nature occur very rarely. I hope the information above clearly explains our decision.

If you have any further queries please do not hesitate to contact me.

Kind regards,

Alex Moore
Dealing Support Desk
"
That's the exact same bloke who called me to resolve my issues, he's actually a manager so I think the help desk guys must of put two and two together with my claim and forwarded your email to him.

For the record he seemed a fair guy.

Can anyone advise of any reports / enquiries into SB that may exist - going back to my eairlier points i find it very worrying 90% loose SB'ing long term, surely SB can't be complete luck, it's based on real world markets and commodities for christ sake! Whats going on!?
defender110 is offline   Reply With Quote
Old Mar 25, 2011, 8:32am   #75
Joined Jul 2010
Re: Email from Igindex

Quote:
Originally Posted by tar View Post
I emailed the dealing desk and i asked them about this matter and here is their response , which is more than fair , i didnt know that the futures market wasnt trading at the time ...

"Dear Sir

Thank you for your email. Please let me provide the context to our decision to suspend trading on our Japan 225 (Nikkei) markets last Wednesday evening. Firstly, the most important thing to note is that at the time we were acting as market makers because no futures markets were trading. We were making our price according to the volatility seen in other markets and client business that we were seeing. I am sure that you are already aware, but to expand on this further, USD/JPY had just dropped 3.5% in a matter of minutes. There was also news emerging from Japan that the Government would intervene imminently in order to try and weaken the Yen, and rumours that the Nikkei would not reopen as scheduled.

With all this in mind, we felt we had no option but to stop making a price for the short period until we could establish a firm market price when the underlying futures market opened. I am afraid that during this period we were unable to quote prices either online or over the phone to open new bets or close any that were existing. We resumed quoting as soon as we possibly could, around 30 minutes later.


"
we were acting as market makers.

Isn't that what SBs do all the time... 'the client trades our prices', blah, blah,etc??
Ross Spur is offline   Reply With Quote
Old Mar 25, 2011, 10:08am   #76
Joined May 2001
Re: Email from Igindex

Quote:
Originally Posted by Ross Spur View Post
we were acting as market makers.

Isn't that what SBs do all the time... 'the client trades our prices', blah, blah,etc??
Yes, that is true, but to put his comment into the correct context I think that he was trying to say that they were making their price using other markets due to the fact that the actual underlying market was closed. More commonly called a 'grey markets', spreadbetting firms will make certain markets 'out of hours' when the underlying futures are closed. The most common one is FTSE which is quoted by many firms on a 24 hour basis.
stevespray is offline   Reply With Quote
Old Mar 25, 2011, 11:58pm   #77
D70
Joined Nov 2009
Re: IG Index dispute - advice welcome!

I think you should count yourself lucky.
Why? Because shares can go immediately into auction and there is nothing you can do about it. This is how markets operate. Win some, lose some.
D70 is offline   Reply With Quote
Old Mar 28, 2011, 10:57am   #78
Joined Jul 2008
Re: IG Index dispute - advice welcome!

"i find it very worrying 90% loose SB'ing long term, surely SB can't be complete luck, it's based on real world markets and commodities for christ sake! Whats going on!? "

If you consider betting with spread bets as being similar to poker playing in many mathematical & psychological respects and then examine the percentage of winners, you'll find that the percentage of long term winners is roughly very similar. Not much more than 10% of long term poker players are winners too, in other words. So 10% is not such a surprising figure: most people tend to run their losses and cut their profits too early for just one instance of poor discipline. On another note, I always found it bizarre in the late 90's/early 2000's, when there really were plenty of bad eggs (giving the few winning retail clients multiple re-quotes, manual execution, freezing the platform etc.) in the SB industry, that given how few were successful - why couldn't they just leave those 10% of winners alone, and rely on the fact that the SB firm's profits will come from the 90% who are statistically going to lose? On a positive note, in these days of far greater openness and transparency, we are all blessed for the fact that the SB companies seem to have got their act together on that issue at least.
peakoil is offline   Reply With Quote
Old Mar 28, 2011, 11:54am   #79
Joined Jul 2010
Re: IG Index dispute - advice welcome!

Quote:
Originally Posted by peakoil View Post
"i find it very worrying 90% loose SB'ing long term, surely SB can't be complete luck, it's based on real world markets and commodities for christ sake! Whats going on!? "

If you consider betting with spread bets as being similar to poker playing in many mathematical & psychological respects and then examine the percentage of winners, you'll find that the percentage of long term winners is roughly very similar. Not much more than 10% of long term poker players are winners too, in other words. So 10% is not such a surprising figure: most people tend to run their losses and cut their profits too early for just one instance of poor discipline. On another note, I always found it bizarre in the late 90's/early 2000's, when there really were plenty of bad eggs (giving the few winning retail clients multiple re-quotes, manual execution, freezing the platform etc.) in the SB industry, that given how few were successful - why couldn't they just leave those 10% of winners alone, and rely on the fact that the SB firm's profits will come from the 90% who are statistically going to lose? On a positive note, in these days of far greater openness and transparency, we are all blessed for the fact that the SB companies seem to have got their act together on that issue at least.
Yes, you had to have been there to know how bad SB was in the early days. Why couldn't they just leave the 10% of winners alone? Probably just because every business tries to maximise its profit and minimise potential risk.
Ross Spur is offline   Reply With Quote
Old Mar 28, 2011, 1:08pm   #80
Joined Jul 2008
Re: IG Index dispute - advice welcome!

Quote:
"Why couldn't they just leave the 10% of winners alone? Probably just because every business tries to maximise its profit and minimise potential risk. "
Ah, but alas, that made sense only in the short term. In the long term - such tactics end up shooting themselves (the SB companies) in the foot - through loss of good will/poor publicity, driving clients to open up additional accounts with competitor SB companies; and I can assure you for a fact,that on two separate occasions when at least one smart-ass, working at a certain SB company was messing around with my orders when I was on a winning streak (as good luck can happen from time to time...), presumably thinking he was oh soooo clever, I also happened to have had two persons of greater means than I, who were watching what was going on in front of their incredulous eyes. And let me tell you, they were very interested beforehand in signing up as new clients to that particular SB company, and that was in fact the only reason they'd called over, to spend some time learning how it all worked in real time! No prizes for guessing that once they witnessed the high jinks which I suffered after one too many successful bets, each person later joined another SB company, thinking I was crazy to do any business with that particular company. Even to this day, neither person (+ also, let's not forget, their loss of personal recommendation to others) would even think of opening an account with that particular company, no matter how much I try to convince either that times have changed, as the SB firms now have too much to lose through persons ranting off in forums, posting videos etc showing to everyone what happened. Now, no SB company wants to be the one that most in the blogging & forum communities refer to in unfavourable terms.

Accordingly, those bad eggs messing around with the few clients on any given winning streak might have saved a few foolish short term pennies and pounds (back in the bad old days) as they also ended up losing not only their continued undivided patronage but also the victim's most valued "worth of mouth" (personal recommendation is worth far more to the SB firms, a fact they really should have realised sooner, than all their advertising combined) to the firms which play fair. Naturally whoever played the role of "smartasses" back then, to this very day, never realised just how unluckily dumb it was to mess with those orders on those times when potential new customers were observing.

For sure, they saved a few unscrupulously taken pounds at best, and lost far, far more than that in new business. Leave those on a winning streak alone and they will sing the praises of the firm that played fair through good times & bad, which will in turn encourage more friends, family & acquaintances to become interested! After all, when on a winning streak people are far more likely to encourage others to watch to see how it can be done. Statistics will then look after the firm's long term profits infinitely better than any knavish attempts to throw a spanner in the works!

Hmmm, looking back on those particular times now, it's indeed quite satisfying to reflect on the idiocy of those who try to be too smart...
peakoil is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Financial Services Authority (FSA) fines City Index Limited (City Index) £490K Black Swan Spread Betting & CFDs 0 Jan 20, 2011 1:21pm
Broker offering index trading in Chinese Mainland Stock Index geraldmun Brokerages 5 Apr 24, 2009 7:40pm
Herrick Payoff Index and Index futures Rognvald Technical Analysis 2 Jan 7, 2009 3:18pm
How to extend a stock index backwards using another related index Lucas in london Technical Analysis 1 Aug 21, 2007 4:51pm
Refco and TT dispute $spreader Trading Firms 10 Aug 24, 2005 3:39pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)