LTSB with CMC

[Umbrella]

Had a newbie friend who trades with CMC and had a long LTSB position. When LTSB went ex-right yesterday CMC failed to adjust the prices. When he called up CMC told him 'it was a spread bet so you don't get benefits from rights issue'!!

Pretty outrageous! I guess this is just 'one of those' that CMC is good at

 

[Trader333]

If he was Long did he close his position before the Dubai news ?


Paul

 

[brendansvest]

His account would have been cash adjusted. The rights were not offered as there is no physical holding.

 

[Umbrella]

his position is still open. CMC didn't adjust the price nor his account balance. the matter has gone to compliance. if anyone else happened to be holding a long LTSB position yesterday with CMC, i'd be very interested to know your experience.

 

[brendansvest]

Im managing clients with open LLOY positions with CMC. They have all been cash adjusted.Their account will show the same position but there should have been two trades put through their accounts by CMC. A sell at last nights close and a buy @ 59.15 which is the cash adjusted ex-rights price.

 

[Umbrella]

Yes CMC has now made some adjustments - but this should of been done before 8am- the fella had the wrong position for nearly the whole day.

Also- the rights issue is= 134 shares @ 37p for every shares you already own- with other spread betting frims- (IG ) my new position is long @ 61.35- which is correct- CMC are saying they only adjust the position- not the stake- they never used to do this

I think they have messed this up!