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#1 17-06-2016 21:35:07

johnedward
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From: Paris - France
Registered: 21-12-2009
Posts: 2547
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Brexit: brokers reduce leverage by increasing margin requirements

Brexit: brokers reduce leverage by increasing margin requirements


http://www.broker-forex.fr/forum/userimages/brexit-gbp-eur.JPG
Article by ForexCruch:

The June 23rd EU Referendum is getting closer, with every opinion poll moving the pound more quite a bit. The event takes place when markets are open, but liquidity may be thin in parts of the Asian session, and uncertainty may be abundant in the weekend ahead of the vote.

Brokers are getting ready for high volatility. Here are updates from currently 24 forex brokers, and more data will be added as it comes in.

The list is an alphabetical order:

Arrow Admiral Markets: The broker is making changes on various pairs according to account sizes. All the information is here. Note that this applies to both the pound and FTSE. The changes are from June 20th to June 27th.
Arrow AxiTrader: The broker is taking measures: “From market open on the 20 June, AxiTrader will be lowering the maximum leverage available on all products. As detailed on the website, for some products, the maximum leverage will be 20:1 while on others it will be 100:1. This will remain in place until market close 28 June.”
Arrow CMC Markets:  The broker makes a change on June 13th and another one on June 20th. This refers to stock indices, commodities and GBP pairs of course. All the information is here. Thanks to reader edzfx for the information.
Arrow DeltaStock: So far, nothing has been decided upon, but the broker is considering taking steps.
Arrow easyMarkets: This broker stands out from the crowd by committing to a leverage of 200:1. Here is a quote from the news: “At easyMarkets we will honour our promises to our traders just as we have done during every major market moving event. Just as our free guaranteed stop loss and fixed spreads protected traders during the CHF events of January 2015, so they will protect them during the Brexit.”
Arrow Forex.com: Also Gain Capital changes margins in stages, as reported in Forex Magnates:The company announced that after the market closes this Friday on June 17th it will put in place temporary changes to its margin rate requirements to help clients’ reduce risk – as volatility is expected around time of the June 23rd event. Minimum margin rates for all UK indices and GBP crosses including EUR/GBP will increase six-fold from 0.5% to 3% after the close of trading this week, and will thus affect traders when markets open again next Sunday. In addition, minimum margin rates for EUR crosses, EUR indices, and US Indices will be doubled from 0.5% to 1%, according to the update.
Arrow FXCM: The broker is said to be embarking on a strategy to change margins on both the pound and the euro pairs beginning on June 10th and extra measures on June 17th. Update: these are the affected pairs: “Following is a list of all the FX pairs that have been affected by the margin changes: EURUSD, GBPUSD, EURAUD, EURCAD, EURGBP, EURJPY, EURNZD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD.”
Arrow FxPro: The UK regulated broker has sent updates to its customers regarding Brexit, information about the event as well as the risks of high volatility. So far, it hasn’t made changes to margins.
Arrow FXTF: The Japanese broker changes requirements to these pairs: “GBP/USD, GBP/JPY, EUR/GBP, GBP/AUD, GBP/CAD, GBP/CHF, GBP/NZD, and GBP/ZAR, including exceptions for some of the pairs across several of its platforms such as MT4 and high-speed FX”.
Arrow FXCC: Also here, caution is warranted: “FXCC has announced the following preventive measures. From 13 June, the margin requirements were increased by 200% for all GBP pairs and 100% for all EUR pairs.”
Arrow Hantec: As a consequence of the potential for heightened market movements, please be advised that leverage for all accounts will be restricted to 25:1 commencing 19th June until 24th of June and potentially for a short while after this date depending on market volatility. More
Arrow IC Markets: “IC Markets has targeted GBP-denominated currency pairs and the UK100 index as the key focus of its leverage reduction. As such, the broker has implemented a leverage of 1:50 (2%) for GBP pairs and the UK100 index, by far the index with the largest exposure into the UK capital market. By extension, EUR currency pairs and the Euro indices are also slated for an adjustment – both sets of instruments will see their leverage reduced to 1:100 (1%)”. More
Arrow IG: Margin requirements will be increased on June 10th, 17th and 22nd.
    Iron FX: The Cyprus based broker announced a change in requirements coming to effect on Friday June 17th and perhaps another change will come on June 22nd.
Arrow Lite Forex: Changes will come to effect around the referendum, from June 20th to the 27th, related to all GBP, EUR and oil pairs. And: “Suspend the opening of new trades with the “close only” mode solely available for the following GBP and EUR pairs: GBPNOK, GBPSEK, GBPZAR, EURPLN, EURHUF, EURNOK, EURCZK, EURSEK, EURDKK, EURZAR, GBPTRY, EURTRY.”
Arrow OANDA: Lower maximum leverage: “To help ensure our customers are more insulated from such movements, we will be temporarily lowering the maximum leverage available on GBP pairs to 20:1 after the market close on June 17, 2016. The affected pairs will return to prior leverage levels after the market close on June 24, 2016”
Arrow Orbex: New measures applied and perhaps more will follow: As of Thursday, 16 June the margin requirements for GBP and EUR crosses will be increased to 4% (1:25 Leverage). Margin requirements for other symbols will be 1% (1:100 leverage). As of Monday, June 20th the Margin stop-out level will be at 50%.
Arrow Saxo Bank: The Danish broker will hike margin requirements by 7%. “Saxo Bank’s main plan is apparently to hike margin requirements on GBP currency pairs to 7%, meaning max leverage of about 14:1 on GBPUSD, EURGBP and other GBP pairs. Leverage allowed in normal market conditions at Saxo Bank in GBP majors is 50:1, or margin requirement of 2%.”. Update: GBP 7%, EUR 3%, Indices 5-8%. More here.
Arrow ThinkForex: Here are the changes: “With the Brexit vote taking place on the 23rd June 2016, ThinkForex has reported that it will increase margins on all GBP crosses and the UK stock index to U%, in anticipation of increased volatility during the UK’s vote on is relationship with the European Union.This change will come into play from market open Sunday the 19th of June till rollover on Monday 27th 2016, however if volatility continues the changes maybe be extended.”
Arrow Tickmill: The makes changes: Tickmill will lower the maximum leverage to 1:25 for all GBP pairs; 1:100 for all EUR pairs; and to 1:20 for the UK100 index. The adjustment will be active from June 20, 0:00 (GMT+3) until June 24, 24:00 (GMT+3). Once the market turbulence settles, the leverage rates will be returned to their original values.
Arrow TradersWay: Also here, lower leverage is applied: “Due to these market factors, we have taken the decision to increase the margin requirements for all GBP pairs by a factor of four, with the change being effective from the 13th of June 2016. This means that your leverage on all GBP pairs therefore will be four times lower. E.g. if your account leverage is 1:400, then your effective leverage applied to GBP positions will be 1:100.” Thanks again to edzfx .
Arrow Vantage FX: The Australian broker is doubling the margin requirements in two stages: on June 13th and June 20th.
Arrow XM: Here are the major changes: “XM explained in an update to clients that from 23:00 (GMT+3) this Friday June 17th, it will increase margin requirements on all its currency pairs to 1% which will effectively reduce leverage to 100:1, as well as on gold and silver. The company noted that all other instruments it offers will not be affected. ” 
Arrow Z.com: Also the UK arm of GMO Click makes changes: “The news follows after the company made a similar announcement for its GBP-related currency pairs last week including in GBPUSD, GBPJPY and EURGBP which were changed to 2% margin or 50:1 leverage, and followed now with a 50% cut on leverage for EUR/USD to 100:1 as volatility may spread to additional currencies and securities.”


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#2 17-06-2016 21:37:02

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2547
Website

Re: Brexit: brokers reduce leverage by increasing margin requirements

HotForex's Brexit statement:


http://www.forex-central.net/img/logos/hotforex-logo.jpg
Email from HotForex:

Dear Client,

We would like to inform you that on Thursday, the 23th of June 2016, a referendum will take place in the UK to determine whether the British population wishes to maintain their European Union membership.

This is a major political event that is expected to impact the financial markets and may result in high volatility, price gaps/spikes, lack of liquidity, widened spreads or other movements in the markets.

As an initial measure, HotForex is taking some preventative steps to protect the best interests of its clients and the Company and to ensure a continuous safe trading environment for all parties.

In light of the above, please be informed that on, Friday the 17th of June at market close, the margin requirements for all GBP pairs will be increased to 4% (1:25). In addition all remaining forex pairs and gold margins will be increased to 2% (1:50). This will be applied to existent and new orders and to all accounts no matter their current leverage.

As a result of the above mentioned adjustments we kindly request that you please evaluate your current postions and calculate whether further funding will be necessary to maintain your open positions. We strongly advise you to perform the necessary funding actions well in advance, in order to ensure your account will be well-funded before the referendum takes place.

You may calculate the amount of funds needed to maintain your current positions by using our Position Size Calculator here.

Furthermore be informed that HotForex will continuously monitor the reactions of the market as this event approaches and highlight that further restrictions to our standard market conditions might apply.

Please familiarize yourself with the risks associated with this event and perform due diligence risk management when trading under such unprecedented market conditions.

Kind Regards,

The HotForex Execution Team

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"Anything worth having is worth going for - all the way." - J.R. Ewing

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#3 17-06-2016 21:43:12

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2547
Website

Re: Brexit: brokers reduce leverage by increasing margin requirements

Pepperstone's Brexit statement


http://www.forex-central.net/img/logos/pepperstone-logo.jpg
Email from Pepperstone:

RE: Important: GBP & EUR Margin Changes over EU Referendum

Dear Trader,

On the 23rd of June, Britons will go to the polls to vote on whether or not to leave the European Union.

The referendum has been billed as the single biggest currency event of 2016 and has the potential for extreme volatility in GBP and EUR based currency pairs regardless of the outcome.

As a result of this expected volatility, Pepperstone will make temporary changes to our trading terms for margins on GBP and EUR based pairs as well as certain index markets listed below. These leverage changes will apply as of market close on the 18th of June and will be in effect until further notice.

New leverage / margin requirements for affected instruments are as follows:

                 GBP pairs and UK100 maximum leverage      EUR pairs and EU indices maximum leverage
Leverage                              50:1                                                               100:1
maximum
   
We kindly advise our clients to carefully consider and evaluate the potential impact of the above changes as well as the event itself on your existing and future positions on these products. Please also consider the potential trading conditions below in the lead up to the event:

Arrow Extreme volatility on GBP, EUR, CHF currency pairs and on UK and European indices.
Arrow The propensity for liquidity providers to significantly limit their liquidity, leading to a considerable widening of spreads as well as potential increased amounts of slippage on executed orders.
Arrow Ensuring you have enough available margin / equity in your account for the days leading up to and during the voting/announcement of results. This includes "hedged" positions (long and short on the same symbol believing this eliminates your market risk) which if spreads widen have the potential to stop out positions.

Should any further trading terms change on our products, Pepperstone will endeavour to contact you via email, MT4 or by changes made to our website. However, we reserve the right to make further changes without notification such as increased margin requirements, trading restrictions on certain products or any other such matter.

Pepperstone will be carefully tracking market volatility indicators in order to revert to our standard terms as soon as we deem possible. Whilst it is very difficult to predict the nature or scale of the event, depending on the result it could mean these conditions could be in effect for an extended period of time.

Kind regards,

The Pepperstone Team

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"Anything worth having is worth going for - all the way." - J.R. Ewing

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#4 23-06-2016 10:13:24

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2547
Website

Re: Brexit: brokers reduce leverage by increasing margin requirements

HotForex's UPDATED Brexit statement:


http://www.forex-central.net/img/logos/hotforex-logo.jpg
Email from HotForex:

Dear Clients and Partners,

We would like to inform you HotForex has reassessed the market conditions surrounding the upcoming British Referendum and decided to ease margin requirements on all the Forex pairs available in HotForex’s trading platform.

In light of the above please note that the margin requirements for all GBP pairs are going to be adjusted to 1% (1:100). In addition, all remaining Forex pairs will be adjusted to 0.5% (1:200).

The above will be applicable as from the 20th of June and to all trading accounts no matter its current leverage level.

This means that as of today you will be able to continue your regular trading activities and maintain any long term strategies you might have throughout the referendum process.

Despite the above HotForex will continue monitoring the referendum developments closely and in the event of the market conditions worsening prior to the voting date or around the time the results are published further trading restrictions might apply.

This is an automatic process which will not require any action from your side and your account will not be affected in any other way.

Don’t hesitate to contact our always available customer service shall you have any queries regarding the above.

Best Regards,

The HotForex Execution Team

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"Anything worth having is worth going for - all the way." - J.R. Ewing

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#5 30-06-2016 18:52:25

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2547
Website

Re: Brexit: brokers reduce leverage by increasing margin requirements

HotForex's FINAL Brexit statement:


http://www.forex-central.net/img/logos/hotforex-logo.jpg
Email from HotForex:
Dear Clients and Partners,

As a result of the UK referendum’s outcome it is expected that markets will remain unstable and therefore continuous rough market conditions are expected.

Nevertheless HotForex will revert it’s trading parameters back to standard levels in order to allow our clients to continue their trading activity.

Therefore, trading conditions will revert back to the pre-Brexit levels across all Forex pairs and to all accounts as of today, Monday 27th June 2016. This means that your account leverage level will be returned to the levels prior of the Brexit restrictions.

In addition please note that the following Indices shall remain on ‘Close Only’ mode until further notice:

UK100
GER30
SPA35
FRA40

Best Regards,

The HotForex Execution Team

http://www.forex-central.net/img/banners/Hotforex_bonus100.jpg


"Anything worth having is worth going for - all the way." - J.R. Ewing

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#6 30-06-2016 18:56:13

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2547
Website

Re: Brexit: brokers reduce leverage by increasing margin requirements

Pepperstone's FINAL Brexit statement


http://www.forex-central.net/img/logos/pepperstone-logo.jpg
Email from Pepperstone:

Leverage Returning To Normal

Dear Trader,

We previously notified you regarding increasing leverage on EUR and GBP pairs in a staged approach earlier in the week.

This email is to notify you that our leverage/margin conditions have now returned to their pre-Brexit levels effective immediately.

Our new leverage/margin requirements for affected instruments are as follows:

EUR, GBP Pairs and Indices
Leverage Maximum: Up to 500:1

As stated previously, whilst the margins have been restored to their pre-Brexit levels, we kindly advise our clients to continue to carefully consider and evaluate the risks involved in trading in GBP and EUR based pairs over the coming weeks and months. These include:

Arrow Extreme volatility on trading products, particularly GBP, EUR, CHF currency pairs and on UK and European indices.
Arrow The propensity for liquidity providers at certain times to limit their liquidity, leading to a potential widening of spreads as well as potential increased amounts of slippage on executed orders beyond what would normally be deemed acceptable.
Arrow Ensuring you have enough available margin/equity in your account at all times. This includes "hedged" positions (long and short on the same symbol believing this eliminates your market risk) which if spreads widen have the potential to stop out your positions.

We thank you for your understanding and continued support of Pepperstone and wish you well in your trading during this particularly volatile period in the markets. If you have any further questions feel free to contact support.

Kind regards,

The Pepperstone Team

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"Anything worth having is worth going for - all the way." - J.R. Ewing

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