The Royal Bank of Scotland, a mogul among giants in Britain’s financial district which was established in the early 18th century, presently employs 141, 000 staff around the world. Even though its massive presence in the world’s largest financial centre, the company has declared its intention to stop its CFD trading service and marketindex which shall commence in the last quarter of this year.
The doors will be closing on marketindex for the last time and there will be no further trading and no transfer of business to other sectors of the firm which will result in the company ending its relationship with its major marketindex clients.
Is this the end for CFDs?
The interesting point here is the fact that CFDs was able to enjoy a certain degree of popularity in the trading landscape within the retail sector. Several, analysts explained that the spread betting and CFD industry is indeed growing outside the UK and for most investors it means that there is a potential for expansion to stay ahead of the curve.
Winding down CFD Operations
The Royal Bank of Scotland concerned itself with a public notice on its marketindex website earlier this week and that any open positions and trades as well as other unexecuted data will be terminated in accordance with marketindex terms and conditions.
The announcement cautioned clients of marketindex to make sure that they have withdrawn their remaining funds before the date of closure. Any remaining funds in their respective trading account will be returned to each clients’ reference account following the winding down of operations.
New CFD Platform spearheaded by ETX capital
Just recently, the above mentioned firm partnered itself with Bet3000 to release a new brand of CFD trading platform. The said website will provide a sportsbook and casino client base the opportunity to trade in financial derivatives with the use of CFDs. The company alleged that one of the main benefits of the partnership is the potential to access a brand new client base for the same existing market.
When contemplating the possibility of other companies within the UK, it could be alleged that there are certain things that will be different in terms of the entire CFD industry. It can be inferred that the industry is suppressed wherein the volumes are quite low and brokers are also not holding large overnight portfolios anymore due to the perceived risks such that clients and broker alike indubitably turned their attention to other untapped areas such as the FX.
The Royal Bank of Scotland was able to retain its place as the dominating force in the financial sector, despite the series of disagreements surrounding its behaviour in events leading up to the financial downturn five years ago following its nationalisation.