What happens if the stock I am trading is suspended/delisted?

The exchange will release information when a stock is suspended/delisted. If a stock is suspended/delisted, we would have to wait for the stock to become tradeable again – which is outside of IG’s control.

If you have an open position on a stock that delists and is in liquidation, we’ll close your position at a level of zero and typically open a new position – called a ‘proceeds line’ – on your behalf which is untradeable, has no price and brings no value to your account. Once the company confirms there is no return to shareholders, which can take years, we will close your proceeds line position at the level of zero.

However, we won’t start this procedure as soon as a company announces it is delisting. The stock status will first need to be reviewed by our corporate actions and risk departments.

How do suspended/delisted shares affect my CFD account?

When a stock is suspended/delisted, our corporate action and risk departments may review it to ensure its correctly margined internally. If the news surrounding the company is uncertain, we may increase the margin requirements for leveraged position. If you have with an open position on the stock and we plan to increase its margin requirement, we’ll contact you.

The margin requirement will remain at 100% until there is further news in the underlying market which we will then reflect in due course.

Overnight interest fees and short borrowing fees are still charged for suspended shares as we still pay these fees to our trading partners. These positions will remain open until the shares are declared worthless, or its residual value is liquidated and paid out.

How do suspended/delisted shares affect my share trading account?

There is no fee required for holding these suspended shares in the account.

For share trading, there is no option for clients to close off their positions as the market is not trading. The shares will remain in the account until it resumes trading/ are confirmed worthless/ liquidation is completed/ shareholders have been paid out.

Please note: This information is intended as a generic example, and subject to change at any point. It may not apply in every scenario.