@Dan-The-Man pre-Me there was an advertised IS price but if you tried you couldn't actually sell as it I think it was switched off? May be wrong though.
I get what you say about removing themselves from the risk and agree with you that it's not acceptable to change the terms and remove it completely. I was just suggesting this may be a temporary solution to 'allow' traders to leave, ie. open the door a little, but at the same time prevent a run on the index. I'm guessing it will work in stages where the next step will be add IS back, possibly at a lower point to open the door further and then raise it to the 60% (?) when all is OK. Swing the door open and everyone is free to come and go as they like.
Well look, I hope you're right and if that is the case, they need to get that message out there right away.
My sense is that they have removed themselves from risk, they've trapped guys like me into our ports, meanwhile many of the top end traders are still able to act, so if you were analysing their data, it's nothing but a gain for them. In which case, why would they switch it back? There's no obvious incentive... it's not like I could sell up and leave... So they aren't seeing a mass exodus.
- They want to keep traders happy and retention is their 2nd biggest objective (after expansion). I mean retention by choice not force! 😉
- This will at some point impact a high priced player in which case there will be outrage from many traders. Think about the Messi example @Vespasian32 used
- At the moment, many are distracted and just happy to be grabbing bargains with a new toy. Nothing wrong with that but the reality will hit once the novelty wears off
- FI want a market where any player can win divs and it works in their favour if a 30p player wins PB (lower payout). They also opened up MB to the squad if you remember?
- They likely want to see more trading. At present only the top 200 are tradeable. Add to this the prices which inevitably makes trading more difficult, less volume, frequency etc.
- New users are what FI needs and wants. Nobody dips their toe with a single Sancho share, and selling shares with potentially no sell value is not a good first impression.
- FI do listen to feedback. We need to explain this to them and the effect it is having.
- I genuinely don't think they are out to screw us over. They are a business of course, but they do communicate openly and much of what they do is experimental. It has worked out over the long term so far though. Have to give them credit for that.
An alternative to them offering a base IS price would be to add value to the bottom end of the market, so there is always a value. For example, increasing IPDs, but best not to go there for the time being.
Sleep well. I think everything is going to be fine. 🙂