IG Index reviewing Margin Requirements

IG Index don’t seem to have lost much time reviewing their risk exposure and are changing the deposit rates on a large number of shares, from Monday 9 February. Some rates have actually gone down, but for many the rate has gone up. For example, I have spread bets in Vane Minerals (VML). Their margin requirement has increased from 25% TO 75% [75% margin - may as well make it 100? ]. Again I have no problem with them doing this for new positions, but for existing positions that is moving the goal posts and the same as a bookie changing the odds of your bet after the race has started.

An IG spokesman stated ‘Having recently undertaken a wide-ranging review of our deposit rates for individual shares, these changes will ensure that our margining policy is appropriate to the persistent and unprecedented volatility we have seen in underlying markets.’

On a separate basis it appears that IG markets are also withdrawing from the SIPP CFD market. Very strange as I would have thought it would is mega profitable for them. Who has experience with other providers? I see City Index charges .2%, min £15 commission.

Updated deposit rate margins (1.40MB).

Thoughts: Most deposit margins going up, a few down, the update in deposit margins was a necessary evil for IG to reduce the number of chancers who trade with too little margin in volatile times.

Tags: IG Index, igindex, margin

This entry was posted on Wednesday, January 28th, 2009 at 10:36 pm and is filed under Industry 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.