Before the big EU Referendum, we collected Brexit preparations from 41 brokers, with most of them limiting leverage. Other measures were taken as well. Well, how did those brokers do? What measures have they relaxed and which ones have remained intact?
Here is an update for after the event with most report being positive so far. The list is organized by alphabetical order and will be updated as new information comes in.
CFI Markets: Margin requirements maintained through the weekend. “Accordingly, we would like to hereby inform you that CFI Markets will keep margins as is currently at least until Monday and we shall keep you updated of any changes. Additionally, and although we will try to keep spreads as low as possible, these risk to be higher than in ordinary times.”
CMC: No losses. “CMC Markets plc (“CMC” or “the Company”) can confirm that despite the extreme volatility in the financial markets as a result of the EU referendum and the subsequent result of the UK’s vote to leave the EU, the Company incurred no losses.”
Darwinex: No issues, margin requirements remain.”The company stated that increased margin requirements will remain in place until the dust settles, which could take a few more days for the market to digest.”
Dukascopy: Extends 30x GBP and EUR leverage limits. “The leverage remains reduced to 1:30 on GBP and EUR currency pairs and 1:10 on GBR.IDX, DEU.IDX/EUR, ESP.IDX/EUR, EUS.IDX/EUR and FRA.IDX/EUR over the weekend and on Monday. Maximum position limitations for UK and European CFD indexes also remain in force: GBP/IDX – 5 contracts; IDX/EUR, ESP.IDX/EUR, EUS.IDX/EUR and FRA.IDX/EUR – 10 contracts.”. Update: “Dukascopy Group is pleased to announce that special leverage restrictions on currencies and indexes that have been in force since Wednesday 22 June are being removed. With immediate effect, clients will be able to trade all currencies and indexes according to the normal leverage settings. “
FxPro: Removes some close only limits. “As a reminder, margin requirements on Spot/Futures Indices remain intact at 15%, all RUB pairs are at 5% and all Shares are set to 15% on all new positions.”. Update: a return to normality: “As a result from the outcome of the referendum we expect volatility to continue over the next weeks however not at the levels we have seen last Thursday and Friday”
FXCM: No material adversity. “The FXCM Trading Station operated normally throughout the Brexit market volatility and we are extremely pleased with our liquidity providers, our staff who worked through the night and our clients who continued to heed our warnings during these historical market movements”.
Gain Capital: No adverse effects: “Gain Capital’s financial position has not been adversely affected as a result of today’s market volatility following the UK’s decision to leave the EU. Heightened volatility around the referendum was anticipated and we took proactive steps to protect our clients and the firm, which included increasing client margin requirements in anticipation of significant market moves”
Hantec Markets: Further cuts to trading leverage.”Hantec had earlier limited margin to 25:1 (pre vote), and will now limit leverage further to 10:1 on all spot FX, spot CFD, spot Oil an spot Bullion positions.”. Update: leverage restored to 25:1. “Example: Currently your account was set to 10:1 leverage the margin requirement for 1 standard lot of EURUSD is €10,000. Hantec Markets is changing its leverage to 25:1 and as such the margin requirement will decrease to €4,000.”
IG: The group reported effective operations: “The Company managed its operations and exposure very effectively through the night and into today. IG’s emphasis has been on assisting clients through this period of uncertainty, through measures both ahead of and during the event”.
Leverate: Clients Unscathed after Brexit Outcome:
Financial Technology provider Leverate reported it remained, together with its client, unscathed after Brexit outcome.
The tech provider supplies its clients with risk management and liquidity as part of its offerings and it reported this morning that its precautionary measures taken prior to the event, ensured that its clients were able to pass this high-volatility episode without a hiccup. Leverate has still advised its clients to keep risk management policies in place as the risk for market volatility is still possible.
Britain’s surprise decision to leave the EU stirred markets across the world and caused higher-than-usual call and trading activity. Leverate experienced a volume 277% higher than usual during the hours immediately following the outcome, yet the firm reported that their platforms were running smoothly, despite the heightened volume.
While investors around the world were voicing their frustration on social media saying they were missing out on buying opportunities or had their hands tied while seeing their deep losses due to platform slowness or unavailability, Leverate’s systems remained strong. An executive for the firm said “during the time immediately following the announcement of the Brexit outcome, our clients experienced seamless trading and the performance of our platforms remained excellent.”
OANDA: OANDA executes 340% increase in average daily volume with zero rejections or requotes despite Brexit volatility. “The fact that we were able to execute 100% of trades with no rejects or re-quotes, and were back to average spreads across key CFD and FX pairs well before US market open, is a testament to the speed and stability of our trading platform. Traders can be as prepared as possible for a market event such as Brexit, but if they don’t have the right trading partner, traders won’t be able to trade at the speed they demand”
Plus500: record revenue and signups: “Plus500 stated that it saw record spread revenue recorded as trading volumes were well above normal. The company also had 17,000 new account signups leading to a best-ever 1,600 new trading customers on Friday.”
Saxo Bank: Clients gained.”Going into the UK referendum we have considered it important to take prudent measures to reduce our clients’ exposure to risk and to be fully transparent. It has been essential for Saxo Bank to explain to our clients that neither clients nor Saxo Bank benefit from overleveraging and that we, with our clients’ interest firmly at heart, are doing our utmost to educate on the range of options available.”
TD Ameritrade: Suffered an outage after Brexit. Angry clients took to Twitter and it seems we haven’t heard the end of it.
Vantage FX: Maintains high requirements. “Vantage FX has once again made all Forex and Indices markets on our MT4 platform fully tradable, but due to the uncertain nature of the referendum outcome, the elevated margin requirements remain in place as we await further liquidity to return to the market.”
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