Potential mass exodus from Spreadbetters.

[Moneylender]

Had this from my brokers, I suggest you all make your opinions heard by emailing the ESMA.

The European Securities and Markets Authority (ESMA) is proposing some changes which are likely to considerably affect your trading. Their proposals for retail customers include lower leverage on spread betting, forex and CFD products and changes to the margin close-out rule as part of a wider review of the industry. ESMA does listen to the opinion of traders and will make its final decision according to the feedback it receives. You have until 5 February to provide feedback to ESMA, and we would strongly encourage you to do so.

Example 1 – CFD/FX: You trade 1 lot of EURUSD. The margin required currently is 310. The margin required under the new ESMA proposal is 4133.33.


Example 2 – Spread Betting: You trade £1 per point on GER30. The margin required currently is 133.08. The margin required under the new ESMA proposal is 665.40.


They also propose changes to close out rules which would virtually remove our ability to hedge bets!!

 

[timsk]

Just a little update on T2W's response to ESMA's proposals. Sharky has e-mailed the entire U.K. and EU membership and started a bespoke thread on the topic here: Respond to the ESMA proposals. If subscribers to this thread would be so kind as to move over to Sharky's new thread and post any comments there - that would be much appreciated!

Tim.

 

[Splitlink]

That doesn't make sense to me, with £23K in your acc, you should be able to trade FTSE at £3/pt without using any margin...

This is a Brexit move, as part of the plan to weaken London as a financial centre.

The fact that it makes no sense , although true, does not matter. The mass of letters that that they will receive, also, does not matter except that they will have been successful in putting another nail in the Brexit coffin.

 

[Splitlink]

Just a little update on T2W's response to ESMA's proposals. Sharky has e-mailed the entire U.K. and EU membership and started a bespoke thread on the topic here: Respond to the ESMA proposals. If subscribers to this thread would be so kind as to move over to Sharky's new thread and post any comments there - that would be much appreciated!

Tim.

Hi Tim,

I just wanted to answer Cbrads post.

 

[Amirio]

If this new regulations passes, then the SB or CFD co's could lower their minimum amount per bet so retailers could still trade.

For example:

You trade £1 per point on GER30. The margin required currently is 133.08. The margin required under the new ESMA proposal is 665.40.
But with £0.50 per point on GER30, the margin will be £ 332.50
And with £0.25 per point, margin will be £ 165.00

This at least one way to keep the margin amount low.

 

[Jason101]

If you are reading this thread and want your say in the consultation then do this...

1. Answer the ESMA's call for evidence on their Responce Form found on this page.

https://www.esma.europa.eu/press-news/consultations/call-evidence-–-potential-product-intervention-measures-contracts#registration-form_consultation

2. On the drop down tab enter "Individuals"

3. Under ‘Institution’ type ‘N/A’

4. Attach (upload) a brief or detailed complaint about the proposed margin changes. Using Microsoft Word or Excel.
(or any over pdf txt doc docx xls xlsx ppt pptx pps ppsx odt ods od format)

That's it your done. Have your say in under 5 mins.
You have until the end of the day Paris time on Sunday 4th February.

Edit: Closing date is end of day Monday 5th not Sunday 4th.
Edit: The esma site is back up and running now. But instead of requesting a submission in document form.
They are now only accepting a standard email (the address is in the link.)

 

[parthaab]

My two cents as a sheople:

1. Petitions dont matter. They are just another illusion to make it appear as though the people have a say

2. The elite brokers ( like IG etc. which are worth billions, potentially Rothschilds money ) are hand in glove ( and potentially owners of ) with regulatory bodies

3. Only one realistic aim - to screw anyone who loses, and not allow him / her the chance to declare bankruptcy

In short, another law by the classes to screw the masses.

 

[tomorton]

My two cents as a sheople:

1. Petitions dont matter. They are just another illusion to make it appear as though the people have a say

2. The elite brokers ( like IG etc. which are worth billions, potentially Rothschilds money ) are hand in glove ( and potentially owners of ) with regulatory bodies

3. Only one realistic aim - to screw anyone who loses, and not allow him / her the chance to declare bankruptcy

In short, another law by the classes to screw the masses.

Do you trade via UK financial spreadbetting or CFD's?

 

[jm1054]

Sorry, sort-of off-topic but bloody hell Tomorton, I've just been reading the thread about ESMA on FF!

I'm tempted to sign up just so that I can back you up in the discussion with those strange conspiracy-theorising SB haters!

You have a lot of patience, hats off to you!

Do you trade via UK financial spreadbetting or CFD's?

 

[tomorton]

Sorry, sort-of off-topic but bloody hell Tomorton, I've just been reading the thread about ESMA on FF!

I'm tempted to sign up just so that I can back you up in the discussion with those strange conspiracy-theorising SB haters!

You have a lot of patience, hats off to you!

Cheers jm.

Its a weird phenomenon. So many traders view SB firms as scammers who should be regulated out of business. Yet they can't back it up with evidence or experience: they feel they don't need to, as its just what "everybody knows".

 

[Splitlink]

Cheers jm.

Its a weird phenomenon. So many traders view SB firms as scammers who should be regulated out of business. Yet they can't back it up with evidence or experience: they feel they don't need to, as its just what "everybody knows".

I know that they are wrong---that's good enough for me. How do I know? I've traded EU, GU, Dax and UST today and have not lost on any of them. It's been a fairly brainless day, I agree but, still, how can I say that SB firms are scammers under those circumstances?

 

[tomorton]

ESMA press release confirms proposed restrictions on leverage -

https://www.esma.europa.eu/press-news/esma-news/esma-agrees-prohibit-binary-options-and-restrict-cfds-protect-retail-investors

 

[kalott]

ESMA press release confirms proposed restrictions on leverage -

https://www.esma.europa.eu/press-news/esma-news/esma-agrees-prohibit-binary-options-and-restrict-cfds-protect-retail-investors

"“The agreed measures ESMA is announcing today will guarantee greater investor protection across the EU by ensuring a common minimum level of protection for retail investors."

and what if the ones that really needs protection (use high leverage) move to other places with no regulation?

i may be wearing a tinfoil hat but i think this is a brexit thing and they dont care if anyone trading lose money

why did this happen just after brexit?

 

[tomorton]

"“The agreed measures ESMA is announcing today will guarantee greater investor protection across the EU by ensuring a common minimum level of protection for retail investors."

and what if the ones that really needs protection (use high leverage) move to other places with no regulation?

i may be wearing a tinfoil hat but i think this is a brexit thing and they dont care if anyone trading lose money

why did this happen just after brexit?

This has been a long time coming but I'm pretty sure the aim of it is to protect the civil servants and their political bosses from criticism, not to protect traders.

 

[sminicooper]

"“The agreed measures ESMA is announcing today will guarantee greater investor protection across the EU by ensuring a common minimum level of protection for retail investors."

and what if the ones that really needs protection (use high leverage) move to other places with no regulation?

i may be wearing a tinfoil hat but i think this is a brexit thing and they dont care if anyone trading lose money

why did this happen just after brexit?

My suspicion is that this is just an example of the EU's desire to punish UK for BREXIT. I don't think they like us being a world financial centre. Also, just another example of the nanny state – it's a shame that the EU doesn't concentrate on getting its real problems sorted out. Since time immemorial there have been losers in the financial markets of all kinds – and after all, the losers are essential if anybody's going to make some money!

No worries though! Our glorious leader the "MayBot" can just dump all these regulations when we leave in 12 months time. Oh! sorry, I was only joking: she is busy working on BRINO (Brexit in name only) and along with the fishermen and other people, she's working to stuff us traders also.

It would also appear that the "consultation" was just an exercise in procedure by civil servants – like they always are. You wonder why you took the bother to make the case. As always though, it won't put a stop to the successful trader - it's just another irritation that we have to cope with - there's always something to keep you on your toes with trading.

Of course, if we were French we would just nod politely and ignore these regulations for the next 12 months.