Potential mass exodus from Spreadbetters.

Splitlink

Legendary member
10,850 1,231
CI have done 50p for decades ---Forex much lower. Apart from pulling my horns in a bit, this has not altered my style of trading. Watch that 50% allowance before stopping, though. That's a trap for the unwary.
 

Jason101

Experienced member
1,365 213
I have just noticed that IG have dropped there min trade size on most major fx from £1 to 50p per point.
I think this is since and in relation to the new regulations. They have also increased the knock out trades to cover some minor fx as well as the majors.
IG have just done a complete U-turn on their new Knock Out trades, now the margin needed is just the same as their other trades and in some cases even greater!
Seems like a big balls up.
I recon their loophole has it's own holes in it!
 

tomorton

Legendary member
7,233 963
IG have just done a complete U-turn on their new Knock Out trades, now the margin needed is just the same as their other trades and in some cases even greater!
Seems like a big balls up.
I recon their loophole has it's own holes in it!

I never understood why they thought it was outside ESMA in the first place.
 

Jason101

Experienced member
1,365 213
I never understood why they thought it was outside ESMA in the first place.
Yes, I've just been reading your post in the death of spread betting thread.
At the moment it looks as though you called that correctly right from the start.
I'll carry on with S.B with the new children's leverage (which is fine for entry)
But what has really messed me up is in pyramiding and divirsification.
 

tomorton

Legendary member
7,233 963
Yes, I've just been reading your post in the death of spread betting thread.
At the moment it looks as though you called that correctly right from the start.
I'll carry on with S.B with the new children's leverage (which is fine for entry)
But what has really messed me up is in pyramiding and divirsification.

"children's leverage" - I just love that! Bravo!
 

koteltrader

Junior member
14 1
Anyone resident in Europe who opened an account with an Aussie broker in order to sidestep the more onerous terms of the ESMA regs (i.e. margin) may want to take a look at this statement from Aussie regulator ASIC:
19-088MR Some AFS licensees may be breaking overseas laws

Commissioner Cathie Armour said, ‘AFS licensees offering OTC derivatives to overseas retail clients should, as a matter of priority, seek advice on the legality of their offerings to these clients. Any non-compliant activities should cease immediately and be notified to ASIC and the relevant overseas authorities.’
I asked IC Markets whether the content of this statement is likely to affect clients who are resident in Europe. The first answer was "no, it won't affect you." But when I asked whether this was based on a legal opinion, I was told that staff hadn't been briefed on this matter.

Can anyone with more of a legal brain help translate the regulator-speak in this statement?
 

tomorton

Legendary member
7,233 963
Anyone resident in Europe who opened an account with an Aussie broker in order to sidestep the more onerous terms of the ESMA regs (i.e. margin) may want to take a look at this statement from Aussie regulator ASIC:
19-088MR Some AFS licensees may be breaking overseas laws



I asked IC Markets whether the content of this statement is likely to affect clients who are resident in Europe. The first answer was "no, it won't affect you." But when I asked whether this was based on a legal opinion, I was told that staff hadn't been briefed on this matter.

Can anyone with more of a legal brain help translate the regulator-speak in this statement?

No surprise that ESMA want to close this loophole. Their first priority of course is to protect the health and stability of the market they regulate.
 
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new_trader

Legendary member
6,197 1,261
Anyone resident in Europe who opened an account with an Aussie broker in order to sidestep the more onerous terms of the ESMA regs (i.e. margin) may want to take a look at this statement from Aussie regulator ASIC:
19-088MR Some AFS licensees may be breaking overseas laws



I asked IC Markets whether the content of this statement is likely to affect clients who are resident in Europe. The first answer was "no, it won't affect you." But when I asked whether this was based on a legal opinion, I was told that staff hadn't been briefed on this matter.

Can anyone with more of a legal brain help translate the regulator-speak in this statement?
My GUESS...based on hearing and reading about other interstate/international differences in law and regulation involving online activities is this:

It may/might come down to citizenship rather than residence. If you can prove you are an Australian citizen then you might (and I mean very might) be allowed to have an account even if you are resident in another country. I have dual citizenship and there are some things I can't do because I am not resident in the country of citizenship.

On the bright side, these new MICRO Futures from CME might be a new opportunity, unless you trade forex.

Ref: http://www.cmegroup.com/cme-group-futures-exchange/micro-futures.html