Hardly a surprise really when you think about it. Exchange betting and spread betting are the most difficult forms of betting to understand. So what happens when you combine the two? You have a concept which is bloody hard to explain and appeals to a very tiny sector of the betting public! Exchanges rely on liquidity. To get liquidity, you need lots and lots of punters. Spread firms are niche betting companies, they will never become mass market due to the credit checks etc that people require to get an account. Also, spread betting is almost completely restricted to the UK. There is no international market for it. Combining the two most difficult concepts was always going to struggle, it looks like Cantor have simply given up a business that cost too much money and was never going to make it.
On the Spreadfair website:
Dear Cantor Spreadfair Customer
Cantor Index Limited has taken the decision to close Spreadfair, its online betting exchange, to focus on its financial spread betting and CFD business.
Effective from 4 pm, 1st December 2008, Cantor Spreadfair will cease to accept new customers and will take no further opening wagers.
Any funds that you have on deposit with us remain totally secure and any funds not required to support open bets will be refunded to you immediately.
If you have any questions, please contact our customer services team on 08000 111 441.