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!!
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!!