The Investment Industry Regulatory Organization of Canada (IIROC), the nation’s self-regulatory organization, has announced an additional alteration to its margin requirements on select foreign exchange (FX) pairs including the Canadian dollar (CAD), following a periodic change in volatility, according to an IIROC statement.
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 Mexican peso and the euro.
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Furthermore, the IIROC has revealed a revised table for all of its margin requirements of different currency pairs, with the changes to the leverage ratio of the euro yen vs. the Canadian dollar and the Mexican peso vs. the Canadian dollar.
Starting from February 25, the margin requirements on the EUR/CAD pair will be raised to 3.9% from 3.0%, while on the MXN/CAD, FX traders in Canada will also see a climb to 3.9% from 3.0%. The aforementioned FX spot risk margin rates replace a previous list provided by the IIROC back on February 16, 2016.
A full list of the IIROC’s rates, including its basket of twenty-one currencies as of February 18, 2016 can be accessed by the following link.