UK Spreadbet firms to be investigated by the FCA

Discussion in 'Wall St. News' started by Visaria, Dec 6, 2016.

  1. Visaria

    Visaria

    http://www.bbc.co.uk/news/business-38219698

    CMC Markets and IG Group were the biggest fallers on the FTSE 250, both down about 30% in morning trading.



    Bad news imo. I like a good bonus. Cracking down on leverage will not help either.
     
  2. JSSPMK

    JSSPMK

    Very interesting. So what about sports bookies and what about binary options? I smell a rat, I doubt it's the real reason they are going after them IMO. We are a gambling nation.
     
  3. wintergasp

    wintergasp

    - Bookies are regulated.
    - Binary options will as it is considered similar to CFDs.
     
  4. JSSPMK

    JSSPMK

    Bookies are regulated? By whom?
     
  5. CBC

    CBC

    ABOUT FREAKIN TIME.

    How much do you think they will fall when the investigation is finished?
     
  6. Visaria

    Visaria

    Gambling Commission
     
  7. JSSPMK

    JSSPMK

    When bookies can legally welch out of paying I don't see that as being regulated.
     
  8. Visaria

    Visaria

    They can't legally welch unless they can prove the price was in error.
     
  9. Xela

    Xela


    They really can't. UK bookies are pretty tightly and strictly regulated by the Gaming Commission, which took over from the former Gaming Board about a decade ago.

    The licensing procedures are also a huge disincentive for them to try to circumvent regulatory processes and procedures, because they have to apply to Magistrates' Courts once a year to renew their gaming licence, and on those occasions any members of the public who have a "beef" about them get the opportunity to air it in detail, in court, in front of all the media. There have been a few instances of bookies getting into serious trouble this way, and it's something they don't dare take a chance on.

    They're also fairly well self-regulated, with an independent arbitration council whose findings in individual cases are binding on them.

    Many professional and semi-professional punters say they'd certainly far rather have an argument with a bookie than with a spreadbetting company, and I can see why, from some of the cases I read.
     
  10. CBC

    CBC

    IG wouldn't make it past their first renewal. AHAHAH :D.

    That is quite interesting, thanks for that info. I'm sure there would have been some interesting scenes down there at court.
     
    #10     Dec 6, 2016