Cantor offers market for Northern Rock shares

Cantor Spreadfair has confirmed that through its suspended share markets it is offering its clients the opportunity to bet on the level of compensation Northern Rock shareholders will receive per share as a result of the independent valuation process.

The current price available on Spreadfair is 25p-35p, with the price expected to narrow as clients introduce liquidity to the market.

When a company’s listing is suspended, shares in that company can’t be bought or sold until the suspension is lifted or other arrangements made. Cantor Spreadfair’s suspended share markets allow shareholders to hedge their shareholdings during the period of suspension, as well as allowing those who want merely to speculate on the share price following the suspension to do so.

Cantor Spreadfair is a person to person spread betting exchange where clients are able to post a price at which they are prepared to trade or accept a price that has already been posted by another client. Spreadfair’s clients will therefore be able to determine their own valuation of Northern Rock’s share price via their open order book. Previously, the only alternative open to clients wishing to trade on suspended shares was through the OTC market or through market makers, often inaccessible to the retail investor.

As a peer to peer exchange, the spreads are generally much tighter than the spreads offered by the traditional spread betting companies. Commission is charged on the net winnings. Profits made from spread-betting are exempt from capital gains tax.

Tags: cantor, Cantor Index, cantorindex, Northern Rock

This entry was posted on Friday, February 22nd, 2008 at 1:10 am and is filed under Broker News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.