New EU Regulations Proposed

[Caseynotes]

Proposed 30x leverage cap hits broker share price.

 

https://www.leaprate.com/forex/regulations/uk-online-broker-shares-hammered-esma-leverage-proposals-ig-12-plus500-17-cmc-14/

 

[JamesIG]

We put out an RNS this morning. Any questions please ask and I'll do my best to answer them (if possible) https://www.investegate.co.uk/ig-group-hldgs-plc--igg-/rns/response-to-fca-and-esma-announcements/201712180700045754Z/ 

[LegendaryChesh]

Hi does anyone know when the ESMA ruling will be made and come into force?

[JamesIG]

---

wrote:

Hi does anyone know when the ESMA ruling will be made and come into force?

---

They're in a consultation phase currently. I will update everyone as / when we know more. You can see the following based on our #ReplytoEMSA webpage https://replytoesma.trading/

 

 

[JamesIG]

People may also be interested in the following Parliament’s Treasury Committee where they quiz the head of FCA on ESMA CFD intervention. You want to watch from about 15.33.

 

 

[Guest bob22]

I have just been thinking about these new margin rules that ESMA are proposing,

Lets say they are put into place and we have to abide by them..

Well would it be possible that somebody could set up a loan company
where the money you borrow can only be used for collateral purposes,

Lets say IG themselves lend me £10,000

( and for which I would pay a small fee for the loan of that money )

 

That money goes into my account, but I cannot use that money for anything other than being used for collateral against spread betting or CFDs,

I would then have enough money to be able to carry on trading and cover the high leverage margins,

And IG would know their £10,000 was perfectly safe because I would not be able to spend it any where else,

And also IG ( or another company who loans the money ) would make a small amount from me for the loan of the money,

This is probably something that would never be able to get off the ground but it was just a thought...

[Kodiak]

I think a better idea would be to make some new things to trade (as we trade SB and CFD and not the real thing)

 

like something that moves exactly like the DAX ( we can call it GER5) but when DAX moves 1 point GER5 moves 5 point

 

 

 

 

[Kodiak]

Maybe X2 would be enough?

 

Then the GER2 could have the same price-level to start with  as DAX (12 000-ish) 

 

(spread and min size can be adjusted)

 

this is for those who want more leverage others can keep on trading the standard dax 

[Caseynotes]

Nice suggestions both previous posts, hopefully IG will lend us all £10,000 but I suspect they will know exactly where it will go 90% of the time.  being an old hand is closer to the mark but the reality is that with a small account an increase of 10 times margin you will no longer be able to play at £10 per point and will be restricted to £1 per point so bang goes the get rich quick dream, not automatically a bad thing?

[LegendaryChesh]

Hi all any ideas yet on when ESMA are going to conclude ?

[Guest Trader_1707]

, that's a great question,  everybody here wants to know the answer...