Best Thread Capital Spreads

In msot cases, the trading name of the White Label is a trading name of someone like LCG. Any CFDs are a bilateral contract between LCG and the client; LCG is merely conducting the business under a different trading name. In the case of Tradefair Spreads, the contract is between Tradefair Spreads - a trading name of LCG- and its client. Tradefair itself does not have any contractual relationship, although LCG may outsource some of its customer services to Tradefair. If you look on the FSA register http://www.fsa.gov.uk/register/firmNamesCurr.do?sid=61868 you can get a list of all the trading names under which LCG operates.
 
Yes, it is safe to trade with a small white label company if they are under the umbrella of LCG. In case of a failure of a white label company, the funds are still secured with LCG. The only question is, who are entitled to the clients, my guess is the white label company, as they probably pays for the promotion and advertising champagnes.
 
monty

yes it appears that my 'long lunch' has seen quite a bit of comment

LCG is the parent of all our white labels ..even, effectively, Capital Spreads ... all clients sign terms with LCG and LCG owns the trading names ... but we are beholden to TF, PP, DD etc etc to ensure SLA compliance and levels of customer services, downtime etc etc.

TF is majority owned by BF (LCG does not own any stake in any of our WL partners). LCG's role in the arrangement essentially falls down to regulatory control and oversight and management of 'risk' in all its forms. All WL partners have their individual requirements and special offerings (dependant on their target audience) and so you get slight differences from each one.

Simon
 
I couldn't care less who owns what, but still wonder how putting some clients on dealer referral and effectively making it impossible for them to trade fits in with MiFID.
 
montmorencyt2w said:
I don't think it is quite as simple as you are making out in your previous posting.

Betfair bring clients under the name of Tradefair but they are still Betfair's clients, and Betfair does appear to be a totally separate company from LCG or CS. I am a customer of Tradefair (and therefore Betfair), and my contract/agreement is with them and nothing to do with LCG or CS, even if the people who answer the phone, reply to the emails, and (if necessary) accept/deny/delay my trades, are the same does not affect the fact that the real owners of the business behind Tradefair are not LCG/CS but Betfair (or whoever owns them which is not LCG as far as I can see).

The fact that Intertrader use that same form of words
is neither here nor there. The alternative term (which you will see in various places on CS or LCG websites) is "white label partner" which I think is more helpful. It suggests that two independent businesses are collaborating to their mutual benefit, and in this case, are using a common underlying platform (although what the customer sees is different in each case).


Note that the special offer that Intertrader offers, is different to what Tradefair offers.
I haven't done so, but I will bet that if you dig into the corporate background of Intertrader, it is not LCG or CG but some other company at some other address.


I think the situation is analogous to (but not identical to) a franchise. e.g. Hartwells run a Ford dealership in many places, but that does not make them part of Ford - they may have a special relationship with Ford and use their logo all over the place, but they are still a completely separate business.

In other locations or areas, it might be another company who has the Ford dealership. The customer will just care that he is dealing with a Ford dealership and not care much who is behind the business. The "interface" will be much the same, even if not totally identical.

Put it another way: If Betfair suddenly went bust tomorrow, while the name Tradefair might disappear, LCG/CS wouldn't, not unless they had other serious problems. What would probably happen would be that LCG would take over the Tradefair business (as opposed to the trading name) as a wholly owned subsidiary, just like they took over Prospreads.

Well Simon is probably chuckling away at this, enjoying his "revenge" since we are now chasing our tails trying to work out the corporate relationships of the LCG "Trading names" or whatever, instead of giving Capital Spreads a pasting. :LOL:
Click to expand...

Nevertheless , the question was do they have different dealers and i said no , Tradefair offices = CS offices , helpdesk the same , dealing desk the same ... etc . It is a trading name only , and your money is held by LCG not betfair :

" To make a deposit:
All Currencies share the following details:

Account Name
London Capital Group T/AS Tradefair Spreads Tradefair Spreads
"

"InterTrader.com is a trading name of London Capital Group Ltd (LCG) which is registered in England and Wales under registered number 3218125. "

"Tradefair® Spreads is a trading name of London Capital Group Ltd (LCG) which is a company registered in England and Wales under registered number: 3218125. LCG is authorised and regulated by the Financial Services Authority (FSA), a member of the London Stock Exchange. Registered address: 4th Floor, 12 Appold Street, London EC2A 2A"
 
Ross

i have answered the mifid question about 20 times... no matter what is stated by various commentators I can assure you that they are wrong.... otherwise we (and all the other cfd/sb providers) would have the regulator down on them like a ton of bricks.

we put a quote out as a market maker ... a Market Maker has the right to reject or accept any trade request.. Market Makers do not have to accept trades. All trade requests are accepted at our discretion and the bottom of each screen says all "prices are indicative only".

we treat all clients the same in that on each platform they see the same price and if their trade is accepted it is at the price that they requested (orders have different criteria in the case of slippage)

Putting a client on dealer acceptance does not make it impossible to trade (in fact only a very small percentage of dealer request trades are ever rejected). For example if a client trades in large size they automatically go to a dealer no matter who he/she is. Nobody ever seems upset about this or thinks it unreasonable. We have large numbers of clients who trade in 100 - 200 pounds a point in currency and indices and every trade goes to a dealer they seem to have no problem with dealer referral.

Simon
 
capitalspreads said:
Ross

i have answered the mifid question about 20 times... no matter what is stated by various commentators I can assure you that they are wrong.... otherwise we (and all the other cfd/sb providers) would have the regulator down on them like a ton of bricks.

we put a quote out as a market maker ... a Market Maker has the right to reject or accept any trade request.. Market Makers do not have to accept trades. All trade requests are accepted at our discretion and the bottom of each screen says all "prices are indicative only".

we treat all clients the same in that on each platform they see the same price and if their trade is accepted it is at the price that they requested (orders have different criteria in the case of slippage)

Putting a client on dealer acceptance does not make it impossible to trade (in fact only a very small percentage of dealer request trades are ever rejected). For example if a client trades in large size they automatically go to a dealer no matter who he/she is. Nobody ever seems upset about this or thinks it unreasonable. We have large numbers of clients who trade in 100 - 200 pounds a point in currency and indices and every trade goes to a dealer they seem to have no problem with dealer referral.

Simon
Click to expand...

OK, referral to dealers doesn't make trading impossible, but it certainly stacks the odds against the client. This would seem to go directly against MiFID:

<<... will require that firms take all reasonable steps to obtain the best possible result in the execution of an order for a client. The best possible result is not limited to execution price but also includes cost, speed, likelihood of execution and likelihood of settlement and any other factors deemed relevant. >>
 
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<< i don't think you are a client, i think you are a counterparty. you're deliberately not seeing the wood for the trees.>>

As far as I remember, I've always been referred to as a client by SB companies. Not sure where the woods and trees are, but I genuinely don't understand how referral to dealer on suspicion of being a scalper complies with MiFID.
 
you are not executing against the market, you are executing against them. as simon says they are a market maker.
 
Let's all chip in to form a white-label co, get LCG to manage the platform for us and then we all may have a better understanding. Who knows, we may even make some money for a change. :innocent:
 
ross

I am sorry but the lines quoted only indicate that we must do our best to fill a client order in a timely manner BUT they do not say that we MUST fill a client order.

I am also not sure (without reading the full Mifid rules) whether you are quoting from the rules pertaining to market orders transacted by a broker on an exchange.

As with much that is written by regulators it all depends on your view point as to how you read it. (they do not state how fast or how likely and as over 99pc of trades with LCG go through at the price requested and at the time placed, far more than on any DMA/exchange platform, I would say that we were miles within any possible targets that could be set by a regulator). As all our client orders are at one price and one price only the 'best result' in our case is either a fill or a reject. Period.

Simon
 
capitalspreads said:
ross

I am sorry but the lines quoted only indicate that we must do our best to fill a client order in a timely manner BUT they do not say that we MUST fill a client order.

I am also not sure (without reading the full Mifid rules) whether you are quoting from the rules pertaining to market orders transacted by a broker on an exchange.

As with much that is written by regulators it all depends on your view point as to how you read it. (they do not state how fast or how likely and as over 99pc of trades with LCG go through at the price requested and at the time placed, far more than on any DMA/exchange platform, I would say that we were miles within any possible targets that could be set by a regulator). As all our client orders are at one price and one price only the 'best result' in our case is either a fill or a reject. Period.

Simon
Click to expand...
Simon, according to the MiFID this is quite clear, "In the clients best interest" says it all really. You are again talking about a trade rejection from time to time, this is understandable. But flagging and in this matter restricting a client ability to trade on equal terms is not allowed. MiFID use the word "Discrimination" to descibe this cause of action taken by the operator. The operation conducted by Market makers is regarded as an exchange, even if it is a restricted one. Yes you are a market maker, still your price quote must reflect the movement of the underlaying asset, in this case that of the real market.
 
Last edited:
gooseman said:
you are not executing against the market, you are executing against them. as simon says they are a market maker.
Click to expand...
Again, the price quote must reflect the movement of the underlaying asset, that of the real market. They must follow the MiFID directives being a Market maker, categorized as an exchange in its own right.
 
gle101 said:
Again, the price quote must reflect the movement of the underlaying asset, that of the real market. They must follow the MiFID directives being a Market maker, categorized as an exchange in its own right.
Click to expand...



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