I had open OTC options and OTC contracts for differences with LBIE. Was money segregated in relation to margin and unrealised gains on these positions?
Many of LBIE’s clients had agreed that money provided by them to LBIE (including margin) be transferred outright to LBIE as collateral and should not therefore be treated as client money. Examples of the contracts under which clients agreed money would be held by LBIE as collateral and should not therefore be treated as client money are set out under FAQ 3 above. With respect to unrealised gains, the Administrators understand that LBIE did not generally segregate client money in respect of unrealised gains on options, contracts for differences or other OTC derivative transactions.
