OK now I've got your attention, ESMA are proposing to cap leverage as low as 5 to 1 across the whole of Europe. This isn't a joke, this will kill the industry and trading as we know it. The brokers are encouraging everyone to voice your concerns to ESMA during the consultation period which lasts until 5 Feb.
Even if you've never protested at anything before, get off your backside and go through the process below.
Be calm, think about what you're saying.
Explain how reducing leverage will lead to growth of unregulated brokers outside of the EU, and as a client you will happily move brokers that offer decent leverage.
*
Explain why 50:1 (or whatever you think) is a better cap for leverage. One reason is that in combination with negative balance protection, it will allow brokerages to set the appropriate leverage relative to current volatility conditions, as opposed to a centralised control which is static and inflexible.
These regulations WILL have huge unintended consequences.
HOW TO PROVIDE YOUR FEEDBACK TO ESMA
ESMA has very specific requirements when submitting your views. Below are the steps:
1) Visit ESMA’s consultation page
https://www.esma.europa.eu/press-new...ures-contracts
2) Download the “Call for Evidence” Form located under “Related Documents”.
3) Open Microsoft Word or any similar program to provide your feedback.
4) Copy and paste questions from Page 9 of the proposal to Microsoft Word. You do not have to answer each question but we recommend at least answering letters “B” and “I.”
5) Save your Word document.
6) Upload your Word document under “Response Form” and fill in your details.
7) Click “Respond.”
* Deleted: the number of brokers are limited outside of EU.
DO IT!
Even if you've never protested at anything before, get off your backside and go through the process below.
Be calm, think about what you're saying.
*
Explain why 50:1 (or whatever you think) is a better cap for leverage. One reason is that in combination with negative balance protection, it will allow brokerages to set the appropriate leverage relative to current volatility conditions, as opposed to a centralised control which is static and inflexible.
These regulations WILL have huge unintended consequences.
HOW TO PROVIDE YOUR FEEDBACK TO ESMA
ESMA has very specific requirements when submitting your views. Below are the steps:
1) Visit ESMA’s consultation page
https://www.esma.europa.eu/press-new...ures-contracts
2) Download the “Call for Evidence” Form located under “Related Documents”.
3) Open Microsoft Word or any similar program to provide your feedback.
4) Copy and paste questions from Page 9 of the proposal to Microsoft Word. You do not have to answer each question but we recommend at least answering letters “B” and “I.”
5) Save your Word document.
6) Upload your Word document under “Response Form” and fill in your details.
7) Click “Respond.”
* Deleted: the number of brokers are limited outside of EU.