Several of London’s stockbrokers have followed MF Global Ltd.’s decision to demand more money from its clients to cover derivative positions, the Daily Telegraph newspaper reported.
Finspreads, City Index, IG Index and Saxo Bank have told clients that they will increase the ‘margin’ needed to cover Contracts for Difference, or CFDs, on banks and other stocks, the London-based newspaper reported.
Saxo Bank A/S increased margins on all stocks to 50 percent, the Telegraph said. Both City Index and IG Index raised the margin on bank stocks to up to 10 percent, the Telegraph said. An unidentified IG Index spokesman said the group would review its margin requirements in the next few weeks, according to the newspaper.