Turkey Prepares Legislative Framework to Limit Foreign FX Broker Accounts
- The Turkish Council of Ministers has outlined the latest set of measures against leveraged trading.
Authorities in Turkey are continuing to sharpen their efforts to curb trading on foreign exchange markets. The Turkish Council of Ministers has outlined the latest set of measures against traders that use Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term, basing their decision on a law that has been initially tailored to stem speculation with the local currency.
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The new measure, which is being deliberated but hasn't been turned into law yet, forbids Turkish residents from opening accounts with foreign brokers. What is crucial about this law is that the actual clients may be facing a fine if they violate the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.
According to the proposal, the law would forbid Turkish residents from having an account with a brokerage which is not regulated by the Capital Markets Board of Turkey.
The constitutionality of the measure may be questionable according to sources with extensive knowledge of Turkish law, but that hasn’t stopped Turkish authorities on other fronts in recent years.
Turkish Lira Justification
The Turkish government is basing its decision on a law that was drafted in 1989 during the term of military leader Kenan Evren. FX transactions that are included in the new provision include spot FX and all derivatives.
A Turkish legal expert that Finance Magnates spoke to outlined that there is no law limiting the ability of a Turkish citizen from opening an account with a foreign brokerage.
Turkish authorities have engaged in a crackdown on speculation with leverage, leading to a massive decline in available leverage for retail traders, curtailing it to a maximum of 1:10. In recent weeks, two companies from the industry suspended the operations of their local subsidiaries - XTB andSaxo Bank.
Authorities in Turkey are continuing to sharpen their efforts to curb trading on foreign exchange markets. The Turkish Council of Ministers has outlined the latest set of measures against traders that use Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term, basing their decision on a law that has been initially tailored to stem speculation with the local currency.
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The London Summit 2017 is coming, get involved!
The new measure, which is being deliberated but hasn't been turned into law yet, forbids Turkish residents from opening accounts with foreign brokers. What is crucial about this law is that the actual clients may be facing a fine if they violate the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.
According to the proposal, the law would forbid Turkish residents from having an account with a brokerage which is not regulated by the Capital Markets Board of Turkey.
The constitutionality of the measure may be questionable according to sources with extensive knowledge of Turkish law, but that hasn’t stopped Turkish authorities on other fronts in recent years.
Turkish Lira Justification
The Turkish government is basing its decision on a law that was drafted in 1989 during the term of military leader Kenan Evren. FX transactions that are included in the new provision include spot FX and all derivatives.
A Turkish legal expert that Finance Magnates spoke to outlined that there is no law limiting the ability of a Turkish citizen from opening an account with a foreign brokerage.
Turkish authorities have engaged in a crackdown on speculation with leverage, leading to a massive decline in available leverage for retail traders, curtailing it to a maximum of 1:10. In recent weeks, two companies from the industry suspended the operations of their local subsidiaries - XTB andSaxo Bank.