IIROC Hikes Margin Trading Requirement for Select CAD Crosses

The Investment Industry Regulatory Organization of Canada (IIROC), the country’s self-regulatory organization, has once again announced its monthly change in margin requirements on select foreign exchange (FX) pairs including the Canadian dollar (CAD), following a periodic change in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, according to an IIROC statement.

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The IIROC maintains a mandate for the handling of the domestic regulatory environment in Canada – the group enjoys a unique structure as it regularly updates FX margin trading requirements subject to FX volatility. Recently, the IIROC issued a series of changes to the Canadian pairs with the US dollar.

In addition, the IIROC has issued a revised table for all margin requirements of different currency pairs, with the notable change in the leverage ratio of the Japanese yen vs. the Canadian dollar to the Swiss franc vs. the Canadian dollar.

Starting from February 19, the margin requirements on the JPY/CAD pair will be raised to 3.8% to 3.2%, while on the CHF/CAD, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term traders in Canada will also see a jump to 3.7% from 3.0%. These new FX spot risk margin rates replace a previous list provided by the IIROC back on February 8, 2016.

A full list of the IIROC’s rates, including its basket of twenty-one currencies, as of February 12, 2016 can be accessed by the following link.