Jump to content
  • 0

Concessions


cate

Question

Hi all,

I've just received a letter from IG saying "Following on from the European Securities and Markets Authority (ESMA) consultation on leveraged trading, providers can no longer offer any form of concession to retail clients based on trading volume. You may have benefited from spread, overnight funding or currency conversion concessions in the past. Unfortunately, we are no longer able to offer these preferential terms to you."

Does anyone know what these "concessions" are? And what the implications are for our trades after the end of the month? 

Looks like another nasty little landmine planted by ESMA to make life harder... 

Cate

 

 

 

  • Like 1
Link to comment

6 answers to this question

Recommended Posts

  • 0

Morning all,

@cate The email you refer to was sent to clients that had, at some point, benefited from a rebate of some kind. No idea about the specific logic, so apologies if you received it without having done so!

Re. PRT charts fees, I've been informed by our head of platforms that this will not be affected, so you will be refunded should you meet the relevant criteria ( 4 trades/ reasonable volume).  

Obviously this is based on our current understanding and interpretation of the ESMA rules, so possibly subject to change etc...

 

  • Like 1
  • Thanks 1
Link to comment
  • 0

Hi @cate,  the concessions likely refer, just as stated, to preferential spreads, funding and conversions that brokers offer in order to attract and retain high end, large contract size clients and presume this is now to cease under the new ESMA terms regarding the banning of inducements.  

I remember early in the year CMC Markets launched what they called 'Project Tuna' the aim of which was to lure high end clients away from other brokers and wondered but never found out just what kind of inducements they where offering.

https://www.ft.com/content/6f83bc7c-331b-11e8-ac48-10c6fdc22f03

 

  • Like 1
Link to comment
  • 0

Thanks for the reply @Caseynotes!

Sadly, I'm absolutely not a high end client and I think from what I can see the email was sent to me by mistake! I thought it meant spreads and trading costs were going to get much worse post ESMA, but if it's just the withdrawal of special treatment that I never had anyway, that's one less thing to worry about!

Nice to have this forum to discuss on, and thanks for your reply.

Best wishes,

Cate

  • Thanks 1
Link to comment

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      16,008
    • Total Posts
      76,721
    • Total Members
      63,932
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Pranay
    Joined 19/09/21 01:18
  • Posts

    • @Caseynotesthanks for the reply. How do I know if I am trading at DMA platform or any other.       
    • Hi, all brokers are market makers to some extent. If you are trading on the Direct Market Access (DMA) platform then you are dealing on the exchange through IG but if using any other platform then IG looks to match those trades inhouse matching shorts to longs. Any excess they hedge on the exchange themselves.  So IG aren't taking the other side of your trade, they are covered whether you win or lose and they make on the spread from both parties. If they need to hedge they still win because they get a better spread than what they pass on to you.  
    • Err, I've had all my real vaccines, the ones that completed safety trials, have also had special vaxxes when had to present proof when travelling to a country were there were dangerous diseases present, no problem. But experimental gene therapy that has no medium or long term risk data for a disease that, according to the FDA, has just a 1 in 250,000 risk, and needing to present proof to go to a restaurant or club in my home town - no, this is not about a virus.   Note that the FDA officials that the Biden admin pressured into giving early FDA approval for these vaxxes both resigned. FDA panel just voted 16-3 AGAINST approving the boosters This slide was shown at their meeting.  
×
×
  • Create New...