IG notifies clients of measures regarding next Bitcoin fork

Maria Nikolova

IG warns its clients it will stop accepting client orders to open new short positions from November 8, 2017 until after the fork which may lead to the creation of bitcoin2x.

Electronic trading major IG Group Holdings plc (LON:IGG) has responded to client questions about how it would respond to the coming Bitcoin fork.

The company notes that there have been two hard forks in the Bitcoin blockchain so far this year, and there is likely another one in store. This next fork could result in the creation of another new cryptocurrency: bitcoin2x (B2x). Bitcoin2x will activate the second part of the ‘Segregated Witness’ protocol which would lead to an increase in the block size from 1MB to 2MB.

At the moment, there is no consensus within the Bitcoin community over a clear winner in the SegWit2x hard fork. This is a situation similar to the one we witnessed in August this year. The possibility therefore remains that both blockchains and currencies will coexist, or that bitcoin2x will be accepted by the majority and renamed ‘bitcoin’, IG says.

The fork is set to take place once block #494,784 is mined, predicted to be on November 16, 2017, although this date is not firm.

IG notifies its clients that all trading on bitcoin will likely be suspended for a significant period before and after the fork. The company will also stop accepting client orders to open new short positions from November 8, 2017 until after the fork.

IG bases the price of the cryptocurrency products it offers on the underlying market, made available to it by the exchanges and market-makers with which it trades. In the event of a hard fork – IG will generally follow the blockchain that has the majority consensus of cryptocurrency users, and will therefore use this as the basis for its prices. The company reserves the right to determine which blockchain and cryptocurrency unit have the majority consensus behind them.

If the hard fork results in a viable second cryptocurrency, IG may create an equivalent position on client accounts to reflect this. However this action is at its corporate discretion. If, within a reasonable timeframe, the second currency does not become tradeable on major exchanges or is otherwise deemed not to be viable as a currency (for example, it is not mined), IG may delete any positions that had previously been created at no value on client accounts.

Read this next

Retail FX

AvaTrade seals sponsorship deal with F1’s Aston Martin team

Dublin-based forex broker AvaTrade today announced that it has concluded a sponsorship deal with Formula One’s Aston Martin Cognizant team that entails sponsorship rights and other marketing benefits.

Executive Moves

M4Markets onboards Invaxa CEO Marios Antoniou as COO

Seychelles-regulated brokerage firm M4Markets has appointed Marios Antoniou, who has a colorful career within the foreign exchange industry, in the capacity of its Chief Operations Officer.

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”

Industry News

HollyWally opens office in Portugal to bring B2B2C wallet-as-a-service platform to Europe

“We looked at a number of centers for startups throughout Europe and were attracted straight away to Lisbon. There is great Government support and enthusiasm for startups, it’s well positioned between our Asian and US offices, it’s a cost-effective city in which to base a fintech and it’s a beautiful place.”

Retail FX

Eightcap integrates Acuity’s economic calendar for trade ideas on MT4 or MT5

“By incorporating Acuity’s cutting-edge AI technology into our platform, we are able to offer our clients a powerful new tool that will help them stay ahead of the markets. We are committed to providing an extensive range of tools and educational resources that will enhance our clients’ trading experience and allow them to trade smarter.”

<