Shorting with a spread betting company on a soon-to-be delisted stock

[waspy]

Hey,

Generally, with a spread betting company, ETX, CMC etc. If you short a stock which then gets delisted while you still have a short position open upon it, are you allowed to still close the position or can you not buy the share back? Are they under obligation for the position to be closed?

For example, HMV is about to be de-listed. Say I justed opened a short before the market closed. If the companies stocks are now frozen, then does that mean I cannot buy back the short?

Out of curiosity, do you reckon if you placed an order now, it would get executed first thing in the morning? As spread betting companies are the market makers, will they continue the instrument until all positions are closed??

Thanks
Wasp

 

[howard0181]

I have a short in HMV. My broker says I have to wait for the administrator to declare zero value for shareholders before my trade is officially settled. At the moment HMV is suspended rather than delisted.