ESMA Margins

[Guest TradingTimes]

Will IG change the EU ESMA Laws after Brexit in the UK?

 

Really need to know this as the new laws have made it virtually impossible for me to trade the way that i did before.

 

as the Law is EU based they should definitely consider changing the law or completely get rid of it all together.

 

[CharlotteIG]

6 hours ago, Guest TradingTimes said:

Will IG change the EU ESMA Laws after Brexit in the UK?

Hey, 

Thanks for you message. No matter what happens with Brexit the FCA have announced that they will be keeping leverage the same for retail clients. You can read about this by following the link below:

OPINION OF THE EUROPEAN SECURITIES AND MARKETS AUTHORITY

It is unfortunate that the regulations have stopped some retail clients trading. 

 

[Caseynotes]

6 hours ago, Guest TradingTimes said:

Will IG change the EU ESMA Laws after Brexit in the UK?

 

Really need to know this as the new laws have made it virtually impossible for me to trade the way that i did before.

 

as the Law is EU based they should definitely consider changing the law or completely get rid of it all together.

 

 

And it looks like Australia is going to go down the same route as well and as expected the new regulations have lead to a rise in brokerages starting up in less well regulated parts of the globe. There is an interesting new twist too with some of these new brokerages using Bitcoin for deposits and withdrawals which enables them to dodge other regulations such as a need for client proof of identity and residency as well as broker 'know your customer' documentation. 

[CharlotteIG]

3 hours ago, Caseynotes said:

it looks like Australia is going to go down the same route as well and as expected the new regulations have lead to a rise in brokerages starting up in less well regulated parts of the globe. There is an interesting new twist too with some of these new brokerages using Bitcoin for deposits and withdrawals which enables them to dodge other regulations such as a need for client proof of identity and residency as well as broker 'know your customer' documentation. 

@Caseynotes You're quite right there are large changes in ACIS regarding margin. 

https://download.asic.gov.au/media/5241542/cp322-published-22-august-2019.pdf

With regards to the new brokerages allowing clients to fund with Bitcoin we have heard of it but not looking to offer this payment method to any offices. 

 

 

[Caseynotes]

4 minutes ago, CharlotteIG said:

@Caseynotes You're quite right there are large changes in ACIS regarding margin. 

ASIC Product intervention: OTC binary options and CFDs

With regards to the new brokerages allowing clients to fund with Bitcoin we have heard of it but not looking to offer this payment method to any offices. 

 

 

Thanks for the reply, can you check the ASIC link - is coming up as 'page cannot be found'. 

[Guest Mark27000]

1 hour ago, Caseynotes said:

Thanks for the reply, can you check the ASIC link - is coming up as 'page cannot be found'. 

 

Edited October 24, 2019 by Mark27000

[Caseynotes]

12 minutes ago, Mark27000 said:

https://asic.gov.au/regulatory-resources/find-a-document/consultation-papers/cp-322-product-intervention-otc-binary-options-and-cfds/

https://download.asic.gov.au/media/5241542/cp322-published-22-august-2019.pdf

quick read stopped for the draghi presser but, 

so an outright ban on binary options for retail,  

and initial margin of at least (for retail): gold 5%, indices 6.67%, commods other than gold 10%, crypto 50%, all else 20%.  

can't find FX, surely not under 'all else 20%'? otherwise basically in line with ESMA.

[CharlotteIG]

@Caseynotes

That link should work now. Let me know if there's still issues. It's just an outline of their proposal for change. 

https://download.asic.gov.au/media/5241542/cp322-published-22-august-2019.pdf

 

[Caseynotes]

2 minutes ago, CharlotteIG said:

@Caseynotes

That link should work now. Let me know if there's still issues. It's just an outline of their proposal for change. 

https://download.asic.gov.au/media/5241542/cp322-published-22-august-2019.pdf

 

Thanks, link works fine.

[Caseynotes]

9 minutes ago, Caseynotes said:

quick read stopped for the draghi presser but, 

so an outright ban on binary options for retail,  

and initial margin of at least (for retail): gold 5%, indices 6.67%, commods other than gold 10%, crypto 50%, all else 20%.  

can't find FX, surely not under 'all else 20%'? otherwise basically in line with ESMA.

FX same as for Gold  5% (20:1)  big drop from 200:1 - worse than esma (3.33% - 30:1)