I don’t remember receiving an email about this, like I did about the switch by Delta Index to the Gekko Global Markets spread betting platform, but I got a call yesterday from a pleasant lady at Cantor Index to tell me about the new trading platform they had been working on. She offered to send me an email, and all I had to do in order to enjoy the new platform experience was reply to say that I accepted the new terms and conditions.

In the interests of financial journalism — i.e. having something to report on — I went ahead and made the switch without really giving it too much thought, but my account with them was a relatively small “stand-by” account to which no real harm could be done.

Within minutes I received a succession of emails documenting the fact that my cash and open positions had been transferred to the “new account” (so not just an update to their trading platform software then) which could be accessed via a new web site at www.cantorcapital.com rather than the usual www.cantorindex.com. The “capital” part of the new web address sounds familiar, and the new platform bears more than a passing resemblance to the ETX Capital platform which itself bears a resemblance to the Capital Spreads and Tradefair platforms provided by the London Capital Group.

At first glance I’m quite pleased about this, because I never much liked the original Cantor Index trading interface whereas I do like those of the other providers just mentioned.

A Cursory Examination of Features

I’ve not yet used the new platform in anger (I never trade when I’m angry) but I have taken a whistle-stop tour of the platform.

I discovered that the range of markets — at least in terms of individual equities — had not improved much if at all from the limited set that were offered on the original Cantor Index platform. For example, I can’t locate Aminex plc on this platform whereas it is available to trade on Capital Spreads, Tradefair, WorldSpreads, IG index and possibly even on ETX Capital. Stick to more mainstream markets and you’ll be alright.

Whereas the Tradefair, World Spreads and IG Index platforms show the stop level against each open position, the new Cantor Capital platform obliges you to review stop orders in a separate Order Book tab… just like on the Capital Spreads and ETX Capital platforms.

I’m not being negative here, but merely descriptive, and I do like the new trade and order tickets that make it very logical to specify stop levels (including guaranteed, but apparently not trailing) and limits.

Charts appear to be the capable it-finance.com charts that were the staple of so many other spread betting platforms until (for example) ETX Capital introduced their Trade through Charts

Facebook’s upcoming IPO is causing some excitement in IG Index and Spreadex‘s grey market trading after the spread betting providers started a market in the stock.

Facebook is readying to go public following the floating of technology companies LinkedIn and Groupon. In particular Spreadex has started quoting a market allowing spread traders to trade on the percentage change of Facebook’s stock on its first day’s trading. A grey market is about trading in the stock of a company in advance of the actual float or after suspension.

Spreadex spokesman Andy MacKenzie noted that the market is attracting substantial popularity amongst its client base with a heavy bias towards buying which has pushed Spreadex’s spread up from 50%-55% to 60%-65%.

‘Spreadex clients are expecting Facebook to follow in the footsteps of LinkedIn which floated at $45 and closed the first day up 109% at $94.25.’

‘However, it would be wise to remember that Groupon closed its first day up 31% closing at $26.11 after it floated at $20 and Zygna was actually down 5% on its first day, closing at $9.50 after floating at $10.’

Financial spread betting allows speculators to buy (aka go long) or sell (aka go short) a company’s share price and seek to profit from either a rise or fall in the underlying value of the stock. However, Spreadex’s Facebook market is based on the percentage change from the initial public offering (IPO) price to the closing price on its first day on the open market.

Once the float is complete, Facebook stock will then be quoted regularly at www.spreadex.com in the conventional manner alongside thousands of other global equities.

Spreadex’s example trades on the Facebook first day of trading percentage change.

Buy spreadbet example: You believe Facebook shares will rise sharply and decide to buy at 65. Demand for the social network is bigger than the Zuckerberg bank balance and Facebook’s stock price ends the day up 86%. You win 21 multiplied by your stake (86-65). However, in the scenario that Facebook closes the day 25% up you would stand to lose 40 multiple by your stake (25-65).

Sell spreadbet example: Not believing the hype you sell at 60 and are proved right when they finish the day friendless, down 6% from the IPO price. In this case you would win 66 times your stake (60 – - 6). If shares closed up 86% as per the above example, you would stand to lose 26 times your stake (60-86).

Meanwhile, Facebook’s equity value reached $118bn in IG Index’s grey market trading after the London listed spread betting provider started a market in the stock. IG’s quote is based on the market capitalisation value at the end of the first day’s trading and will be rounded to the nearest billion dollars. If the IPO doesn’t happen by the 31st of December 2012, all open spread betting positions will be voided.

According to IG Index’s chief market strategist David Jones: ‘We had lots of buyers coming in – at one point the market cap was pushed as high as $123bn. It’s clear the view of our clients is pretty bullish.’

IG Index has launched a new major advertising marketing campaign designed by the company’s in-house team to promote the financial spread betting company.

The campaign starts today and the timing corresponds with IG’s release of IG Insight, a new market data, live news and expert analysis portal which keeps track of client sentiment and dealing trends across IG Index’s active client base.

Ali Hine, director of marketing at IG Index remarked that IG keeps building on its continued growth in new account openings and active client levels in the United Kingdom. He said that the campaign is aimed at individual who understand how spread betting works but haven’t yet discovered the IG experience.

The advertising campaign is targeted at commuters at London’s Waterloo and Bank stations with travelator, in-car panels as well as a giant wall site, and the message will be enforced by adverts in City AM, Evening Standard, The Times, The Telegraph, Moneyweek and Investors Chronicle. Media buying for the campaign was handled by Mediacom and MPG.

Advertising online media will take the form of contextual and behavioural targeting, including in-app advertising on Bloomberg, as well as HTML 5 banners and activity of Facebook, Twitter and Linked In.

Irish based spread betting provider MarketSpreads is suing former company executives Brian O’Neill and Fergus Rice for an amount equivalent to €1.4 million that they routed from the enterprise to another company in which they were involved.

It is understood that MarketSpreads is seeking summary judgement for €1.4 million plus interest, a total of €1.7 million against former CEO Mr O’Neill, of The Copse, Beresford, Dublin, and ex-executive director Mr Rice, of Pembroke Road, Dublin. The executives parted ways with the company around the middle of 2011. It emerged that towards the end of 2010 and early in 2011 the MarketSpreads board found out that advances, amounting to €1.4 million, had been made to Sports Spread Betting Ireland, a company in which Mr Rice owns a 60% stake and in which Mr O’Neill is also involved. The court heard yesterday that both Mr O’Neill and Mr Rice understand and accept that they are personally responsible for the monies. Meanwhile, the Central Bank was notified of the situation.

Statements in writing show that last June both Mr O’Neill and Mr Rice agreed to pay the money due, which was considered as a loan, plus any outstanding interest. Both executives resigned from MarketSpreads just after and agreed to sell their stock in the company’s parent company to speed the repayment of the monies. In October the company sent a letter to both men notifying them that the sum due amounted to €1.7 million. The letters warned that the company will start proceedings if the amount wasn’t paid in full within 7 days.

Meanwhile, Mr Rice informed the court yesterday that he disagreed that he owed €1.7 million, and stated that the liability should be divided between himself and Mr O’Neill. Mr O’Neill wasn’t present at court.

Mr Rice remarked that it was agreed at the time that an independent specialised party would be appointed to validate the amount due and stated that this hasn’t happened. He also claimed that the interest due should not exceed €200,000.

Meanwhile, the company’s senior counsel, Rossa Fanning, stated it was clear from letters and other documents that the liability was joint and several, meaning both men were liable for the full amount, either individually or jointly. Rossa pointed out that Mr Rice had admitted liability.

Justice Kelly postponed the case to permit time for Mr Rice to get legal advice and deal with a number of other issues.

CMC Markets has been announced as the winner of best CFD provider and best spread betting company categories by members of the Trade2Win trading community. CMC which is owned by Peter Cruddas is thought to have about 75,000 clients worldwide, who placed a total of 26 million trades in 2011.

The scope of the Trade2Win Members Choice Awards, which were launched in 2003, is to provide its 252,000 members with a voice in which to recognise the innovative and high quality service and products from companies in the world of trading.

Doug Richards, Chief Executive Officer of CMC Markets stated that since launching in 1989, CMC’s ultimate goal has always been to become the global leader in the online trading business. He noted that this recognition from Trade2Win’s members reflects the company’s continual efforts to evolve and respond to the needs of their clients, bringing them the best possible trading experience via innovative technology and premium education.

He added: “Whilst we encourage our traders to learn from our selection of education tools, we also want them to learn from each other through our community initiatives such as our monthly Traders’ Club. Throughout 2012 it is not only our aim to offer the very best trading technology but to create a unique trading community for our clients.”

InterTrader has launched a new online training course catering to spread traders of all levels.  Hosted by expert trader Steve Ruffley “The Building Blocks of Trading” consists of five two-hour sessions every Tuesday, starting on 17th January and finalising on February 14^th.

The training programme covers the fundamental aspects of trading, ranging from routine planning all the way down to trading psychology.  Attendants will be supplied with training material and Steve Ruffley will be available to respond to any questions during the sessions.

Course Schedule:

    Title                        When                 Description
                                                      Setting goals is a
                                                      main part of life
                                                      and also business.
                                                      Devising a trading plan
                                 Tuesday 17th January is the key foundation
    Session 1 - Trading Plan     7.00-9.00 pm (GMT)   of stock market trading.
                                                      The markets are volatile
                                                      by their very nature and
                                                      a spread trader has to
                                                      absorb and react to a
                                                      constant stream of
                                                      new information. Learn
                                                      how to absorb the info
                                                      and take advantage of
    Session 2 - Planning &       Tuesday 24th January fluctuations in the
    Preparation                  7.00-9.00 pm (GMT)   stock markets.
                                                      Learn how to manage
                                                      your risk capital and
                                                      when to follow your
                                                      risk strategy consistently
                                                      to the letter, but
                                                      even more importantly
                                 Tuesday 31st January when to adapt it to
    Session 3 - Risk Management  7.00-9.00 pm (GMT)   market conditions.
                                                      Managing and controlling
                                                      your mindset (psychology)
                                                      is probably the most
                                                      underrated part of
                                                      trading. Learn how
                                 Tuesday 7th          to turn from a good
                                 February             trader into a great
    Session 4 - Psychology       7.00-9.00 pm (GMT)   trader.
                                                      In this section you
                                                      will learn how to
                                                      use advanced
                                                      oscillators in
                                                      conjunction with
                                                      the overall trend
                                 Tuesday 14th         and how to capture
    Session 5 - Oscillators and  February             the market
    technical analysis           7.00-9.00 pm (GMT)   sentiment.

When brokerage firm MF Global collapsed on 31 October 2011, many of its UK spread betting clients were left wondering when — or even “if” — they would get their deposited funds returned.

After a series of accusations of foot-dragging on the part of the administrators (KPMG) and the UK Financial Services Authority (FSA), there may be light at the end of the tunnel now that KPMG has announced a possible interim distribution of clients’ funds to happen in mid-February.

While clients’ cash should typically be held by brokerage firms in segregated accounts, entirely separately from the firms own money, returning the funds recovered from unwound positions is neither straightforward nor quick despite the Financial Services Authority’s new “Special Administration Regime” (SAR) that is designed to speed up the return of assets to creditors. Some clients including professional asset managers had questioned the FSA on why cash held in segregated accounts could not be distributed sooner.

Of the MF Global UK client monies and  assets valued jointly at about $1.2 billion, it is expected that more than $46 million (£30 million) will be returned in the near future following an overwhelming vote in favour of the administrators’ proposals.

While the majority of clients will likely see the return of most or all of their claimed funds in due course, the events surrounding MF Global’s collapse and subsequent unwinding serve to underline the importance of not putting all of your eggs in the basket of just one financial institution.

Spreadex have announced changes to several of their NTRs on a number of markets due to recent changes in volatility. For example Silver Daily Future has been reduced from 150 to 80. The full changes are as below -:

Meanwhile in separate news, Capital Spreads have changed their policy on the treatment of dividends on futures-style bets for individual stocks. In the past dividends were included in the pricing of the futures bet, in addition to interest adjustments. Now the prices of futures share spread bets only take into account the interest adjustment, with dividends being dealt as a separate transaction at the appropriate time (in a similar way that they work with the rolling daily bets). The benefit of this is of course that it removes confusion in the pricing of futures style products.

Halifax Share Dealing (HSDL) is now offering financial spread betting – perhaps more evidence that the trading product is becoming more mainstream and acceptable with private traders and investors.

The company refers to the product as spread trading; presumably to avoid the ‘betting’ connotation but this doesn’t mean that the offering is any different. Damian Stansfield, Managing Director at Halifax Share Dealing was quoted saying:

‘This trading product is designed for investors with a good understanding and experience of the market that are keen to take advantage of market volatility, while at the same time minimising capital outlay. Our £100 launch offer is designed to reward both new and existing Halifax Share Dealing customers using the spread trading service. Importantly, customers who are new to our financial spread trading service are also given access to the four-week Trading Academy, which is a free trading course that educates people on how to spread trade, and permits them to trade from just 50p per point during the learning period’.

Damian emphasises that risk control should be a primary concern for any investor dealing in spread trading because this is a margin traded product meaning that positions can change quickly. In this respect Halifax Share Dealing makes available a number of risk management tools to assist with this, such as Limit Orders, Stop Buys (and Stop Sells) and Guaranteed Stops.

Halifax’s spread betting service is provided as a white label from City Index and thus it is to be presumed that Halifax’s spread betting offering will be a version of that company’s own platform.

IG Group Holdings plc has reported strong earnings growth in the 6 months up to November, helped by volatile markets. The company which operates IG Index reported a 28% increase in net trading revenues to £195.5m for the period. Following the record figures, IG Group stated that the growth in net trading revenues was fuelled by a 15% increase in the number of clients trading in the period. Financial spread betting revenues rose by 36% to £71.0m, while revenues from CFDs increased 24% to £116.1m. Binary trading contributed an additional £8.3m in revenues, up 18% year-on-year.

Active clients increased 38% in continental Europe for the half-year, more than in any other are, and the region contributed £37.8m to group revenue. IG’s Japanese operation was adversely impacted last year by new rules which curbed leverage limits for its clients trading CFDs. Its revenue in the country fell by 25% in the period to £8.4m.

IG pointed out that market conditions for the first half-year period were mixed, with relatively subdued months of trading in June and July, greatly offset by extraordinary market volatility in August which spiked client activity to new record levels. After August market volatility remained high but as clients became more accustomed to these market conditions, client activity reverted back to more normal levels.

The FTSE 250 company recorded profit before taxes and exceptionals amounting to £103.2m for the six months ended November 30 – which is sharply up compared to a loss of £70.1m, or a profit of £80.6m when one-off items were excluded. Administrative costs increased by 23% to £92.3m, with tax expenses amounting to £27.6m, up 20% year-on-year. IG, which has around 140,000 clients, also reported an 11% increase in average revenue per client in the first half of fiscal 2012. As a result the company registered net profit o £75.2m for the period. Meanwhile, the company is evaluating the possibility of setting up operations in Switzerland and parts of the Middle East, CEO Tim Howkins said Tuesday.

‘IG has again delivered record results with strong growth in both revenue and profits,” said IG CEO Tim Howkins. “Our significant investment in technology and strong financial position support our increasing market lead and we remain well positioned to deliver further profitable growth. I remain confident about the outlook for the business.’

The growth was boosted not only by market turbulence but also by substantial investments in IT and marketing as well as the demise of rival MF Global at the end of October 2011. IG has highlighted that its international roll-out mobile trading platforms which now include mobile apps for iPhone, iPad, Android, Windows Phone 7 and Blackberry devices now accounts for 16% of all client-initiated trades – more than double what it was a year earlier. IG declared an interim dividend of 5.75 pence, amounting to £20.9m, which amounts to an increase of 10% when compared to the same period last year. As at November 30th the company held cash and cash equivalents of £200.6m compared to £109.3m a year ago.