After the official conclusion of the acquisition of City Index, some compliance changes are on their way for clients of the brokerage. Starting from June 1st, 2015, the company will officially change its legal entity as GAIN Capital. Changes will affect all current and future clients of the brokerage but won’t require them to sign new contracts.
In addition, from the 22nd of June, all clients who are trading equities will be granted access to Central Counterparty Clearing provided by independent European-based clearing house LCH Clearnet. The changes are part of a new compliance procedure which touches on equity markets trading and will not have any effect on the costs of traders.
eToro’s Dylan Holman on Introducing Bitcoin to the Premier LeagueGo to article >>
The changes concern clients who want to have an Individual Segregated Clearing Account (ISCA) instead of a Omnibus Segregated Clearing Account (OSCA). For this privilege, the clients of the broker will have to pay an account opening charge of £13,000 (£200,000 for corporate accounts), plus on-going maintenance and transaction costs.
City Index will make options trading more accessible to traders by simplifying the calculation methodology for margin requirements, reflecting the same figure as the market on which the option is based.
The changes for retail clients are rather cosmetic, and only those customers who require an ISCA account need to review their options. All customers interested in knowing more about the differences between OSCA and ISCA accounts should familiarize themselves on the new conditions on the broker’s website.