US-headquartered INTL FCStone Inc, listed on the Nasdaq under ticker INTL, has raised the margin requirement that clients have to maintain for trading across several of its products ahead of Britain’s vote next week, according to reports from Reuters, as increased volatility is broadly expected by market participants.
According to a letter the company sent to clients that was seen by Reuters, INTL FCStone had doubled the margin requirement that the CME requires for cleared gold and silver futures, as well as for the pound (GBP) and euro (EUR) futures effective June 16th.
“Increased volatility requires us to take prudent action to protect our clients from increased market fluctuations,” said Group Treasurer Bruce Fields, according to the Reuters article, and added “we believe this is in line with what other market participants are doing.”
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Update in a letter to clients
As an increasing number of financial investment firms and brokerages have made such changes in recent days – although mostly retail providers – INTL FCStone is among perhaps one of the first institutional brokers to do so ahead of Brexit week, apparently.
Shares of INTL were little changed today at the end of the trading session in New York and during the after-hour session just underway as the trading week came to a close this Friday.
Finance Magnates has actively reported on more than two dozen or so firms that have implemented similar changes as more and more companies brace for volatility by reducing the amount of leverage that clients can obtain – in an effort to help reduce their potential trading exposure and/or ensure their positions are better capitalized for volatile conditions.
A list of online brokerages that have made similar changes can be seen in the table below: