FXCM Inc (NYSE:FXCM) has issued a note to its clients that it is increasing margin requirements once more after the close of trading in New York today, reflecting the market conditions around the Brexit vote. The company has decided to elevate a second line of defense against prospective unexpected outcomes and substantial volatility which is virtually warranted after tomorrow’s vote on whether the United Kingdom should remain a part of the European Union.
The brokerage is taking the extraordinary steps after the market close today. The changes will affect not only GBP and EUR pairs, but also JPY pairs and a number of CFDs. FXCM Inc (NYSE:FXCM) will hike margins substantially on European indices, CFDs and on UK shares which are available for trading only in select jurisdictions.
FXCM Inc (NYSE:FXCM) will increase the margin requirements starting from Wednesday, the 22nd of June 2016 after 5:00 PM Eastern Time. The brokerage is urging cautioun to its clients in light of the referendum and has advised traders to maintain a usable margin which is at least 80 per cent of the account equity.
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The changes to the margin requirements have resulted in some assets requiring double or triple the levels before the close of trading today. With a number of brokerages reserving the right to implement last minute changes, FXCM Inc (NYSE:FXCM) might not be the only one to take similar steps.
Looking in more detail across the more popular FX pairs, the collateral necessary to maintain positions in the EUR/USD, EUR/JPY, EUR/AUD, EUR/CAD, EUR/GBP, EUR/NOK, GBP/USD, GBP/JPY, GBP/CAD, GBP/NZD, GBP/AUD has been doubled.
Collateral necessary for the opening of positions in major stock indices around the world has also been increased except for the Australian and Japanese benchmarks and the UK FTSE 100, where the level has already been substantially increased during the previous round of changes.
Traders of gold and oil will also have to put up more margin in order to maintain their open positions and open new trades.
Clients of FXCM Inc (NYSE:FXCM) can check the up-to-date margin requirements on their accounts in the Simplified ‘Dealing Rates Window’ of FXCM’s proprietary ‘Trading Station’ platform.