Closing Orders Only on blockchain and crypto stock

[Guest Deanog]

Hi,

Can you please give me the explanation to why IG will only let me do Closing Only trades on Tic: Bloc. Blockchain Worldwide.

Seems other Brokers will still let you trade this.

I contacted the PR an asked what is going on and this is the reply I got.

 

The Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation came into force on 1 January 2018, having been delayed for a year. The basic point of it is to require ‘manufacturers’ of PRIIPs to provide retail investors with an easily digestible level of information about the investment product in a uniform manner (in a Key Information Document). Broadly, the Regulation is directed at retail investment products such as retail funds as well as retail structured products and structured deposits, insurance products and life insurance products that hold an investment element. There’s a specific exemption from the Regulation for corporate shares (i.e. shares in our clients) directly held by the investor – i.e. shares like Blockchain.

 

We have raised the issue with the Company but it seems that the online brokers need to be the ones educated in this matter.

Hope this helps.

 

Best regards,

 

Looking forward to reading why IG will not let me trade this.

[JamesIG]

Hi @Deanog - Thanks for your question. KID's are available on all asset classes and tradable instruments as shown below (Info > KID > Launches new window).

The reason we are unable to offer this on leverage is because it is far too small to offer. The reason we can't offer this on share dealing or ISA accounts is because Citi, our physical counterparty (both execution and custodian), are entirely restricted on any stock related to cryptocurrency. Unfortunately this is something which is entirely out of our control, and I believe something which has only come into play over the last couple of weeks. 

[Guest Deanog]

Hi James,

Thanks for a prompt reply.

Citi let me trade this for months but now will not.

Seems odd to classify everything with the word Blockchain as cryptocurrency when blockchain is only associated with cryptocurrency but can be used in many other ways.

Does this mean Argo Blockchain is also un-tradeable ?

Thanks in advance.

[Guest Deanog]

On 17/08/2018 at 15:40, Deanog said:

Hi James,

Thanks for a prompt reply.

Citi let me trade this for months but now will not.

Seems odd to classify everything with the word Blockchain as cryptocurrency when blockchain is only associated with cryptocurrency but can be used in many other ways.

Does this mean Argo Blockchain is also un-tradeable ?

Thanks in advance.

Hi IG,

As it seems the possibility of Bloc going ahead with its acquisition of Chorum now and will be floated on main market, I'm back to ask if it does occur what are my options with my shares now ? Will they be tradable and to what extent .

It will be finance grade blockchain and will be used in the banking areas etc and has nothing to do with cryptocurrency like I mentioned before being frozen out to trade this stock.