Removing entries from the Freetrade Universe


#1

While we’re all hopeful for new additions to the Freetrade stock universe, I was wondering what would happen if you were unable to offer any particular securities in the future that are currently available in the app.

Is this a theoretical possibility? If so, are there are any circumstances in which you can envisage that happening?

If it were to happen, would we be required to divest our shares, or would they still be manageable via Freetrade, even though new purchases wouldn’t be allowed?


(Vladislav Kozub) #2

Interesting questions raised. As it usually happens, should the stock be delisted from a broker’s universe (for example, HMNY from Robinhood recently), buying will not be possible, but selling is still an option for those who obtained it before delisting. Forcing to sell does not sound right though and I think will not be appreciated by any users as it creates a nasty precedent.


(JamieP) #3

This does pose a dilemma, it would really depend on why we were removing a stock from our universe and would have to judge it on a case by case basis. If for example, a stock dropped out of the FTSE100 and began trading on AIM, then we may take a view simply to block any further purchases.

It becomes a bit trickier when stocks are no longer supported by the UK settlement system, Crest. Once a stock is removed from Crest it becomes much harder to sell. :woozy_face: This is part of the reason we took so much consideration when creating our stock universe.