Worldspreads scandal: ETX Capital poised to takeover failed spread betting company? What does this mean for those clients facing losses?
Last Updated on Tuesday, 20 March 2012 10:16 Written by Gary Howes Tuesday, 20 March 2012 10:03
The Evening Standard has reported that ETX Capital could be mulling a takeover of failed spread betting company Worldspreads.
A deal could be announced as early as today. WorldSpreads accounted for about 3% of the total UK spread betting market.
It is believed the client base and the technology behind the platform at the failed company are the key prize.
What this means for those spread betting clients facing losses at Worldspreads is as of yet unclear, but the assumption would be that a successful transfer of clients from one spread bet company to another would involve ensuring their financial positions were not compromised.
Therefore the key cost involved would be just protecting clients from losses.
That said, it would be interesting to see just how many Worldspreads clients still have an appetite for spread betting after this sorry saga.
Indeed, this failure is a major knock for the industry.
Comparing Spread Betting can confirm we were approached by a marketing executive at Worldspreads in February with the offer of an affiliate deal, highlighting just how sudden the failure at the company was.
Last week saw the abrupt departure of the company's chief executive, Conor Foley.
Simon English at the Evening Standard writes:
"The chief financial officer, Niall O'Kelly, has also gone, and it is at him that WorldSpreads seems to be pointing the finger, noting that the irregularities emerged within a day of his departure.
"The chairman, Lindsay McNeile, denied on Friday that there were any problems at the company, brushing aside rumours that had been sweeping the City for at least a week. Mr McNeile said last week that Mr Foley had moved on because he had other "entrepreneurial" interests to pursue."
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