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UK online broker shares hammered by ESMA leverage proposals

  • #21
  • Dec 19, 2017 2:45pm Dec 19, 2017 2:45pm
https://www.forexfactory.com/news.php?do=news&id=723983
  • #22
  • Dec 19, 2017 3:28pm Dec 19, 2017 3:28pm
Quoting Baldi
There is a possibility for expressing your opinion on leaprate.com: https://www.leaprate.com/esma-rules-questionnaire/
Quoting [URL="https://www.leaprate.com/esma-rules-questionnaire/"
https://www.leaprate.com/esma-rules-questionnaire[/url]]We will be presenting the individual viewpoints, as well as summary results, to ESMA as it collects public comment on its proposals in January 2018.
Everyone should reply to the Questionnaire

I think 30x Leverage per currency pair. Total Limit of 200x for all positions, is a decent Compromise.
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 17.5%
  • #23
  • Dec 19, 2017 4:13pm Dec 19, 2017 4:13pm
Quoting Phil_GMT
{quote} {quote} Everyone should reply to the Questionnaire I think 30x Leverage per currency pair. Total Limit of 200x for all positions, is a decent Compromise.
sounds good to me
  • #24
  • Dec 19, 2017 5:17pm Dec 19, 2017 5:17pm
Quoting Phil_GMT
{quote} {quote} Everyone should reply to the Questionnaire I think 30x Leverage per currency pair. Total Limit of 200x for all positions, is a decent Compromise.
If the goal of the proposals is protecting traders then there is no need for a leverage cap but for negative balance protection.

Negative balance protection + leverage(the more the better) = retail trader protection.

The degree of protection is determined by the amount of leverage(the more the better).
  • #25
  • Dec 20, 2017 12:56am Dec 20, 2017 12:56am
Quoting GU-Night
{quote} If the goal of the proposals is protecting traders then there is no need for a leverage cap but for negative balance protection. Negative balance protection + leverage(the more the better) = retail trader protection. The degree of protection is determined by the amount of leverage(the more the better).
  • #26
  • Dec 20, 2017 7:23am Dec 20, 2017 7:23am
Quoting PoundTrader
{quote}
Negative balance protection --> You can lose the balance of your trading account.

High leverage --> You can deposit less funds to your broker --> less money in the trading account = Less risk.

Low leverage --> You have to deposit more funds to your broker --> more money in the trading account = More risk.
  • #27
  • Dec 20, 2017 7:26am Dec 20, 2017 7:26am
https://www.forexfactory.com/showthr...2#post10609052
  • #28
  • Jan 11, 2018 1:45am Jan 11, 2018 1:45am
https://uk.investing.com/news/stock-...-market-968319

FCA update, still not entirely clear.
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 17.5%
  • #29
  • Jan 16, 2018 4:26am Jan 16, 2018 4:26am
My SB provider can't say anything yet, except no new FCA requirements yet announced. Have emailed FCA for clarification if new leverage restrictions if imposed will apply to SB. They should answer with 2 days.
  • #30
  • Jan 19, 2018 8:35am Jan 19, 2018 8:35am
FCA say only they will await ESMA requirements and must comply with them. My SB firm say the same though I am encouraging them to respond to the ESMA consultation (closes 05/02).
  • #31
  • Feb 1, 2018 8:04pm Feb 1, 2018 8:04pm
I Got This Email Today

ESMA has come out with a number of proposals – aimed at retail traders only – to try to increase conduct standards across the industry. While many of these changes are sensible, the following seem disproportionate and restrictive:

1. Leverage proposal

ESMA is considering introducing the following restrictions on leverage:

30:1 leverage on major currency pairs = 3.33% margin

20:1 leverage on major indices = 5% margin

10:1 leverage on commodities (excluding gold) = 10% margin

5:1 leverage on equities = 20% margin
  • #32
  • Mar 27, 2018 2:02am Mar 27, 2018 2:02am
https://www.financemagnates.com/fore...-kills-binary/

will get implemented, which means FX is dead in the EU.
  • #33
  • Mar 27, 2018 3:49am Mar 27, 2018 3:49am
Nope, it’s not dead at all, if you approach retail trading with a professional attitude and mindset. If you’re a dickhead who dreams of turning your $500 into $500,000 by using a martingale strategy, then you’re fucked, but you always were, so ESMA have put you out of your misery early, now go and get a job.


Quoting chrisdk2017
https://www.financemagnates.com/fore...-kills-binary/ will get implemented, which means FX is dead in the EU.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #34
  • Mar 27, 2018 4:38am Mar 27, 2018 4:38am
There will be many interpretations of "this news"....so there is original source of it:

https://www.esma.europa.eu/press-new...tail-investors

At the bottom of this site, there are QA, I add them too as attached file.

Best to all,
tayette
Attached File(s)
File Type: pdf esma71-98-125_faq_esmas_product_intervention_measures (2).pdf   380 KB | 345 downloads
Per aspera ad astra
  • #35
  • Mar 27, 2018 4:43am Mar 27, 2018 4:43am
This smells like total BS masquerading the real drive - investment banks in the Eurozone desperate need liquidity, so no point they would swallow small and middle sized fish to get profits from markets unless a significant amount of money is withhold by brokers, liquidity providers, market makers etc.

in simple terms - “we need more of your money blocked securely in our liquidity pool for you to make some money on the markets”.

My only surprise is how they got to do much political support to push it through ESMA.
  • #36
  • Mar 27, 2018 4:53am Mar 27, 2018 4:53am
Occam’s razor; they want to prevent up to 90% of addicted gamblers, from losing up to €30k each.

Quoting michaelpelly
This smells like total BS masquerading the real drive - investment banks in the Eurozone desperate need liquidity, so no point they would swallow small and middle sized fish to get profits from markets unless a significant amount of money is withhold by brokers, liquidity providers, market makers etc. in simple terms - “we need more of your money blocked securely in our liquidity pool for you to make some money on the markets”. My only surprise is how they got to do much political support to push it through ESMA.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #37
  • Mar 27, 2018 4:58am Mar 27, 2018 4:58am
Quoting Spreadbetter
Occam’s razor; they want to prevent up to 90% of addicted gamblers, from losing up to €30k each. {quote}
Yeah right , I honestly believe financial scumbags that runs all that system are concerned for my pure wealfare . Stop the pink pills .
  • #38
  • Mar 27, 2018 5:01am Mar 27, 2018 5:01am
To those saying its the end, please quit trading FX now. Very short-sided, and if you merely rely on leverage this game is not for you. That being said the only thing that frustrates me about their agreed proposals is the fact they are limiting leverage drastically on non-major pairs. To me that is complete bullshit because these pairs can very well be traded to diversify risk/currency pyramid on... I don't understand why they asked for our opinion, because i am quite sure they did not consider changing anything within their proposal's in the first place.
  • #39
  • Mar 27, 2018 5:03am Mar 27, 2018 5:03am
Fascinating, so a paranoid conspiracy theorist, busily squirreling away for scandal, can’t accept the obvious reason why ESMA has finally acted to protect consumers..er, ok.

Quoting michaelpelly
{quote} Yeah right , I honestly believe financial scumbags that runs all that system are concerned for my pure wealfare . Stop the pink pills .
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #40
  • Mar 27, 2018 5:05am Mar 27, 2018 5:05am
Interestingly, both IG and CMC shares aren’t down that much today...

Quoting tomorton
FCA say only they will await ESMA requirements and must comply with them. My SB firm say the same though I am encouraging them to respond to the ESMA consultation (closes 05/02).
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
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