A sudden hike in margin requirements on Tuesday for certain
lines of UK stocks by Cantor Index, a subsidiary of US
interdealer broker Cantor Fitzgerald, has seriously annoyed
many of the firm's spread betting and Contracts-for-Difference
Cantor raised margins from 10% to 70% on a number of stocks,
including software vendor EasyScreen. Cantor, which hedges its
CFD business in the stock market, has built up a large stake in
EasyScreen over the last few months.
Sources say that Cantor's hike was triggered by a squeeze
from its own stock lender, although a company spokesman denies
this. "The margins have been changed because of our own
internal review and it affects eight or nine stocks," he
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.