The discussions are still ongoing and include only OTC forex brokers.
The Japanese financial regulator is discussing a new proposal that is aiming to limit retail ForexLeverage, Finance Magnates can confirm. Multiple sources from the Japanese industry are expressing worry about the prospective impact on the market.
Not only could Japanese yen crosses suffer a decline, since retail traders are generally shorting the domestic currency, but the broader impact on the industry may have a real impact this time around.
[gptAdvertisement]
Japan’s retail forex traders are already using the lowest leverage in the world, at 1:25. The Japanese Financial Services Agency, which is the overseer of the market, cut leverage in two steps following the Great Financial Crisis (GFC) of 2008.
The first measure included a cut to 1:50, with the second round of retail forex leverage cuts capping the rate at 1:25. The Tokyo Financial Exchange is said to be exempted from the cuts since it is not providing over-the-counter products.
From Private into Public Hands
The exclusion of the Tokyo Financial Exchange and its Click 365 product signals that Japanese authorities are making a protectionist move for state-owned enterprise. The move is likely to cause a significant response from the Japanese retail forex industry.
The news could be a significant deterrent to Japanese forex traders. Previous cuts in leverage were weathered rather well by the industry, something that is not a certainty with the move to a leverage cap of 1:10.
The new rules are said to be considered for implementation from the middle of 2018. The government’s proposal risks pushing Japanese forex investors, commonly referred to as Mrs. Watanabe, to seek alternatives outside of Japanese regulation.
Industry Insiders Comment
Japanese FX trader Hiro Pie comments: “It can be said that Mrs Watanabe's buying support for the dollar is a strong partner for the Bank of Japan and the government. Rather than making restrictions on all users, such as restricting currency pairs that can be handled, it is more likely to be a stepwise process for individual investors. Depending on the capital of the FX broker firm and the scale of retained earnings, it is reasonable to look for a compromise with the Japanese Financial Services Agency".
Industry veteran Nori Muzuki adds: “We were presented with various hurdles such as high capital adequacy requirements. We overcame those with joint efforts from each company and as a result, we were able to strengthen our balance sheets.”
“It is unfair to protect the public trading venue and punish the private sector and the move will not protect investors. If the leverage becomes 1:10, then honestly, the market will shrink. In the last 20 years or so, the foreign exchange market has been widely expanded by individual investors. Until now, we have balanced investor protection and the degree of openness of the forex market,” he explains.
The Japanese financial regulator is discussing a new proposal that is aiming to limit retail ForexLeverage, Finance Magnates can confirm. Multiple sources from the Japanese industry are expressing worry about the prospective impact on the market.
Not only could Japanese yen crosses suffer a decline, since retail traders are generally shorting the domestic currency, but the broader impact on the industry may have a real impact this time around.
[gptAdvertisement]
Japan’s retail forex traders are already using the lowest leverage in the world, at 1:25. The Japanese Financial Services Agency, which is the overseer of the market, cut leverage in two steps following the Great Financial Crisis (GFC) of 2008.
The first measure included a cut to 1:50, with the second round of retail forex leverage cuts capping the rate at 1:25. The Tokyo Financial Exchange is said to be exempted from the cuts since it is not providing over-the-counter products.
From Private into Public Hands
The exclusion of the Tokyo Financial Exchange and its Click 365 product signals that Japanese authorities are making a protectionist move for state-owned enterprise. The move is likely to cause a significant response from the Japanese retail forex industry.
The news could be a significant deterrent to Japanese forex traders. Previous cuts in leverage were weathered rather well by the industry, something that is not a certainty with the move to a leverage cap of 1:10.
The new rules are said to be considered for implementation from the middle of 2018. The government’s proposal risks pushing Japanese forex investors, commonly referred to as Mrs. Watanabe, to seek alternatives outside of Japanese regulation.
Industry Insiders Comment
Japanese FX trader Hiro Pie comments: “It can be said that Mrs Watanabe's buying support for the dollar is a strong partner for the Bank of Japan and the government. Rather than making restrictions on all users, such as restricting currency pairs that can be handled, it is more likely to be a stepwise process for individual investors. Depending on the capital of the FX broker firm and the scale of retained earnings, it is reasonable to look for a compromise with the Japanese Financial Services Agency".
Industry veteran Nori Muzuki adds: “We were presented with various hurdles such as high capital adequacy requirements. We overcame those with joint efforts from each company and as a result, we were able to strengthen our balance sheets.”
“It is unfair to protect the public trading venue and punish the private sector and the move will not protect investors. If the leverage becomes 1:10, then honestly, the market will shrink. In the last 20 years or so, the foreign exchange market has been widely expanded by individual investors. Until now, we have balanced investor protection and the degree of openness of the forex market,” he explains.
Devexperts Checks Off Type 2 SOC 2 Audit for Enhanced Data Security
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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