Potential mass exodus from Spreadbetters.

NVP

Legendary member
36,297 1,789
Sorry I never got involved in the discussions ....I know I should have fought alongside,you all but I knew how,this was going to pan out and had other stuff on my plate

My opinions on nanny state and interventions from big brother on so many things we value are frankly unprintable these days .....I have to step back to keep the blood pressure down ...hahahahaha

Let’s see how it goes now ......hang in there gang

N
 

counter_violent

Legendary member
9,343 2,357
Sorry I never got involved in the discussions ....I know I should have fought alongside,you all but I knew how,this was going to pan out and had other stuff on my plate

My opinions on nanny state and interventions from big brother on so many things we value are frankly unprintable these days .....I have to step back to keep the blood pressure down ...hahahahaha

Let’s see how it goes now ......hang in there gang

N
Conflicted much!

On another thread you advocate membership of the EU is good for us. Extra layer of govt parasites telling everyone else what to do.
 

Splitlink

Legendary member
10,850 1,231
Conflicted much!

On another thread you advocate membership of the EU is good for us. Extra layer of govt parasites telling everyone else what to do.
You can bray on about Brussels all you want. If you think that, whoever is in charge in the UK, is going to go back on whatever is agreed with EU before actual exit, think again. It won't happen. UK has a lot of addicted gamblers and is worrying many people in the UK. This rule can be blamed on Brussels, as you appear to be doing, but it won't be reversed.
 
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NVP

Legendary member
36,297 1,789
Conflicted much!

On another thread you advocate membership of the EU is good for us. Extra layer of govt parasites telling everyone else what to do.
Fair comment ....:whistling

I wanted to stay in Europe for personal reasons ....firstly my career in finance has always involved contracts and employment with larger pan European companys and I wanted to ensure I had no restrictions for travel and temporary residence in the coming years .....I also was looking to buy property in the canaries for semi retirement purposes .....so Brexit has kyboshed my plans

Aside from that I like Europe and the multi faceted cultural tapestry it provides that is essential for civilised populations to grow and thrive

Insular civilisations with barriers and restrictions to neighbours are not on balance healthy scenarios ....look at the US.....having worked there and with many friends it’s frightening how their culture is regarding exposure to the rest of the world .....and trump hasn’t exactly helped !

The ESMA decision has been a real pain in the **** as I need to be depositing much higher levels of capital if I want to continue trading ......and I fundamentally will not deposit tens of thousands of dollars anymore with brokers ...

So I am pissed off ......I wanted my cake in Europe and to eat it .....and I’ve got neither

I don’t think the uk will revoke these rules when it leaves Europe .....if Teresa may did it would make the uk the spreadbettjng Capital,of the world

Interesting times

N
 
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TheRegulator

Member
65 1
Fair comment ....:whistling

I wanted to stay in Europe for personal reasons ....firstly my career in finance has always involved contracts and employment with larger pan European companys and I wanted to ensure I had no restrictions for travel and temporary residence in the coming years .....I also was looking to buy property in the canaries for semi retirement purposes .....so Brexit has kyboshed my plans

Aside from that I like Europe and the multi faceted cultural tapestry it provides that is essential for civilised populations to grow and thrive

Insular civilisations with barriers and restrictions to neighbours are not on balance healthy scenarios ....look at the US.....having worked there and with many friends it’s frightening how their culture is regarding exposure to the rest of the world .....and trump hasn’t exactly helped !

The ESMA decision has been a real pain in the **** as I need to be depositing much higher levels of capital if I want to continue trading ......and I fundamentally will not deposit tens of thousands of dollars anymore with brokers ...

So I am pissed off ......I wanted my cake in Europe and to eat it .....and I’ve got neither

I don’t think the uk will revoke these rules when it leaves Europe .....if Teresa may did it would make the uk the spreadbettjng Capital,of the world

Interesting times

N


Did any one trade countdowns or sprint product with their spread bet company. And are you entitled for a full refund on those products from the SB company does anyone know????
 

TheRegulator

Member
65 1
Why not entitled for refund ? I wouldn't be the only person whos traded binary sprint or countdown markets right? EMSA banned it cause their no protection for the retail trader.

If i switch to professional status, then i can enjoy all the full benefits before. max leverage, low margins etc. although, ill be liable for any negative balances.
 

Kaeso

Established member
836 91
Why not entitled for refund ? I wouldn't be the only person whos traded binary sprint or countdown markets right? EMSA banned it cause their no protection for the retail trader.

If i switch to professional status, then i can enjoy all the full benefits before. max leverage, low margins etc. although, ill be liable for any negative balances.
ahh they didn't say there is NO protection, they said :

"...there exists a significant investor protection concern in relation to CFDs and binary options offered to retail investors. This is due to their complexity and lack of transparency; the particular features of CFDs – excessive leverage – and binary options - structural expected negative return and embedded conflict of interest between providers and their clients; the disparity between the expected return and the risk of loss; and issues related to their marketing and distribution."

"...The agreed measures ESMA is announcing today will guarantee greater investor protection.."
 
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koteltrader

Junior member
14 1
For any retail clients considering moving their account(s) to Australia - and I see there was some discussion of this upthread - a few things to bear in mind.

The Australian Securities & Investment Commission (ASIC), which regulates CFDs there, has been closely watching the ESMA announcements.

While any policy changes have yet to be announced, a possible outcome is that ASIC requires brokers to apply ESMA rules to all accounts of EU residents. Or it could propose to adopt similar changes to those about to be rolled out across the EU. All speculation at the moment, though these two points are from the mouth of an Aussie broker, who you'd expect to be reasonably well informed about any proposals under consideration.

Worth keeping an eye on the ASIC site.

Also, do look carefully at the close out rules used by each Aussie broker. For example, IC Markets will auto close positions, beginning with the largest loss first and so on, if your available account balance falls below 50%. Once the balance is back > 50%, no further positions are auto closed unless it again dips below.

The latter point won't affect those who sensibly keep their available balance at many multiples over what's needed.
 

swissy

Senior member
2,040 199
Unless you are resident in Australia and part of the tax system it would be highly unlikely that an Aussie broker will open an account....even if you are with the same broker in U.K., Different regulatory and tax systems.
 

Xavier berthod

Newbie
1 0
Brokers are adjusting by getting offshore regulation

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!!
Spoke with an account manager from my broker, they will find a way to keep the leverage up to 400:1 using Cayman Island, Vanuatu , Man Island, ... regulation. up to the client to get the leverage he wants based on what regulation he wants.
 

koteltrader

Junior member
14 1
Unless you are resident in Australia and part of the tax system it would be highly unlikely that an Aussie broker will open an account....even if you are with the same broker in U.K., Different regulatory and tax systems.
Not entirely accurate. It depends entirely on the broker. IC, mentioned upthread, will happily open accounts for UK and EU residents. IG tell me they wouldn't feel comfortable opening an Aussie account for a UK resident.

I'm not endorsing either, btw.
 

bradley79

Junior member
14 0
I've seen some companies that have found a loophole in the system:
ESMA only applies to brokerage firms.
Some EU brokers started opening subsidiary firms registered as gambling services (ESMA regulations do not apply for them). So, they will continue offering binaries and spread betting as a service from a third party firm (their subsidiary).
So, yeah. They found a loophole in the regulation.
 

Brumby

Established member
593 135
I've seen some companies that have found a loophole in the system:
ESMA only applies to brokerage firms.
Some EU brokers started opening subsidiary firms registered as gambling services (ESMA regulations do not apply for them). So, they will continue offering binaries and spread betting as a service from a third party firm (their subsidiary).
So, yeah. They found a loophole in the regulation.
I would caution that the issues probably cut both ways. An entity not subject to regulations mean it is unregulated and comes with all the baggage. Be careful with what you wish for.