The Canadian self-regulatory organization IIROC, has issued an announcement about a pending increase in margin requirements on some foreign exchange (FX) pairs including the Canadian dollar (CAD), following a change in volatility, according to an IIROC statement.
The Investment Industry Regulatory Organization of Canada (IIROC) is tasked with the handling of the domestic regulatory environment, having enjoyed a unique structure as it regularly updates FX margin trading requirements depending on FX volatility.
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More specifically, 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 US dollar to the Canadian dollar (USD/CAD) and the Canadian dollar to the US dollar (CAD/USD).
Starting from January 21st, the margin requirements on the USD/CAD pair will be lowered from 2.1% to 1.8%, while on the CAD/USD, forex traders in Canada have a congruent 1.8%, down from 2.1% previously. These new FX spot risk margin rates replace a previous list provided by the IIROC back on December 14, 2015.
A full list of the IIROC’s rates, including its basket of twenty-one currencies, as of January 21, 2015 can be accessed by the following link.