Trading ban

[cate]

Hi,

I was wondering how the ban the FCA are planning on crypto trading from the beginning of 2021 will affect IG? Specifically will we be forced to close our CFD crypto positions at the end of this year? Given how volatile they are, I don't want to find my positions being closed out at some arbitrary date. 😟

I haven't seen anything from IG about this, but maybe I've missed it.

Hope everyone's having a good trading day.

Cate

[cate]

Hi @CharlotteIG, 

I wonder if you could give some guidance on this? At the moment I have some limit orders in my account to buy various crypto instruments (like ETH) but I'm worried that any positions I take may be forcibly closed out at some random point when the ban on crypto trading comes into effect. I don't want to find I've closed (well, been closed) at the low of the year...

I haven't seen anything from IG about the rules changing, so maybe it's just a rumour that the FCA are banning crypto trading, or for some reason it doesn't apply to our CFDs on IG... (I hate the way the regulators get heavy handed with this stuff!)

Best wishes,

Cate

[CharlotteIG]

23 hours ago, cate said:

Hi @CharlotteIG, 

I wonder if you could give some guidance on this? At the moment I have some limit orders in my account to buy various crypto instruments (like ETH) but I'm worried that any positions I take may be forcibly closed out at some random point when the ban on crypto trading comes into effect. I don't want to find I've closed (well, been closed) at the low of the year...

I haven't seen anything from IG about the rules changing, so maybe it's just a rumour that the FCA are banning crypto trading, or for some reason it doesn't apply to our CFDs on IG... (I hate the way the regulators get heavy handed with this stuff!)

Best wishes,

Cate

Hey Cate, 

It is true that the regulators are looking to put a ban on Cryptos however there hasn't been enough information yet for us to take action. When we have more information we will reach out to client regarding their positions. 

I completely understand and closing positions isn't something we want to do but we will have to stay inline with regulator guidelines.

Please know, we will keep you updated. 

All the best. 

[cate]

Thanks @CharlotteIG ! That's reassuring.

I'm sure IG have already seen this, but someone on twitter linked to this Policy Statement from the FCA, saying that it will come into effect on 6th January:

https://www.fca.org.uk/publication/policy/ps20-10.pdf

"Prohibiting the sale to retail clients of investment products that reference cryptoassets" 

Incidentally the trader  on twitter who linked to that, was commenting on the recent drop in bitcoin  and said "Crypto exchanges started announcing liquidation of UK customer accounts ..not surprising BTC sold off."

Best wishes,

Cate

[Caseynotes]

41 minutes ago, cate said:

Thanks @CharlotteIG ! That's reassuring.

I'm sure IG have already seen this, but someone on twitter linked to this Policy Statement from the FCA, saying that it will come into effect on 6th January:

https://www.fca.org.uk/publication/policy/ps20-10.pdf

"Prohibiting the sale to retail clients of investment products that reference cryptoassets" 

Incidentally the trader  on twitter who linked to that, was commenting on the recent drop in bitcoin  and said "Crypto exchanges started announcing liquidation of UK customer accounts ..not surprising BTC sold off."

Best wishes,

Cate

not just the FCA, the US CFTC looks to be heading the same way.

https://www.financemagnates.com/cryptocurrency/news/coinbase-pro-ends-margin-trading-services/?utm_content=buffer4aede&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

[CharlotteIG]

On 27/11/2020 at 11:41, cate said:

Thanks @CharlotteIG ! That's reassuring.

I'm sure IG have already seen this, but someone on twitter linked to this Policy Statement from the FCA, saying that it will come into effect on 6th January:

https://www.fca.org.uk/publication/policy/ps20-10.pdf

"Prohibiting the sale to retail clients of investment products that reference cryptoassets" 

Incidentally the trader  on twitter who linked to that, was commenting on the recent drop in bitcoin  and said "Crypto exchanges started announcing liquidation of UK customer accounts ..not surprising BTC sold off."

Best wishes,

Cate

This is something we have seen and are preparing for the steps we may have to take. Please note, as mentioned before we will reach out to any clients holding positions about the options they have when we have more information

All the best 

[cate]

Just now, CharlotteIG said:

This is something we have seen and are preparing for the steps we may have to take. Please note, as mentioned before we will reach out to any clients holding positions about the options they have when we have more information

All the best 

Thanks, @CharlotteIG.  And I'm hoping that will include those of us who have limit orders set even if they haven't been triggered into actual positions yet. (Actually for now I've deleted my order, until the position is clearer.) 

Have a good day!

Cate

 

[CharlotteIG]

On 03/12/2020 at 10:32, cate said:

Thanks, @CharlotteIG.  And I'm hoping that will include those of us who have limit orders set even if they haven't been triggered into actual positions yet. (Actually for now I've deleted my order, until the position is clearer.) 

Have a good day!

Cate

 

This has just been posted to run through the changes. Any chatter I have directed this way  

 

[bigtim92]

I wonder to what extent these changes announced in the UK and US will take some air out of crypto-currency prices.

[oliLondon]

Hi Big Tim, it will to a certain extent, however most crypto purchases are not leveraged, next year I can see demand  and price increasing . Its becoming very popular in China,  you have a billion plus people with a lot of savings. 

 

Oli

[Douglas01]

Hi, I have a question around these restrictions -- if my account gets moved to Germany for Brexit (where I currently reside), will I still fall under these restrictions or will I be able to trade these as a retail trader?

[Guest TTT]

So does anyone know if I will I be closed out of my terrible ripple trade, I have been paying to keep it open for years in the hope that it will one day moon as the world reserve digital currency or something along those lines. I got in on day one and am sitting on a largish negative position. The trade expiry date is 2029 that’s why I kept it open. Do I get a full refund if forced to close plus compensation for opportunity cost. I have called IG helpline and three occasions and can’t get through 20plus minutes each time. Sorry for the rant.

[Guest Triple02]

On 29/12/2020 at 15:03, Guest TTT said:

So does anyone know if I will I be closed out of my terrible ripple trade, I have been paying to keep it open for years in the hope that it will one day moon as the world reserve digital currency or something along those lines. I got in on day one and am sitting on a largish negative position. The trade expiry date is 2029 that’s why I kept it open. Do I get a full refund if forced to close plus compensation for opportunity cost. I have called IG helpline and three occasions and can’t get through 20plus minutes each time. Sorry for the rant.

All positions are being force closed on Friday next week. Pretty rubbish timing tbh, and illogical as it's the result of the SEC filing. There's no logic besides IG force closing positions because they're profitable (98% of IG ripple traders are long anyway, right?). 

IG has a trading license for securities, so regardless of the outcome of the SEC filing, IG should be unaffected.

[Noscire]

guys any update on ripple delisting on IG on the 17th of Jan? I called the customer service and they said they will force close all open ripple position on the 17th regardless if you are retail or professional trader.

Please answer

[jonnyali]

How is this possible?