IIROC Hikes Margin Trading Requirement for Select CAD Crosses

Starting from February 19, the margin requirements on the specific CAD crosses will be raised vs the CHF and JPY.

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, 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.

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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 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.

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