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Breaking: Australian Parliament Passes Product Intervention

  • #21
  • Edited 12:53am Apr 17, 2019 12:26am | Edited 12:53am
https://www.financemagnates.com/fore...ent-insurance/

Next to brokers who try to fight to measures imposed by ASIC there seems to be a lot trying to obtain an offshore license in addition to keep their overseas clients. Combined with a true insurance this would even be more attractive than having a simple regulation alone .. just think of the IronFX disaster under the european regulation of CySec.
  • #22
  • Apr 18, 2019 7:00am Apr 18, 2019 7:00am
https://www.financemagnates.com/fore...ds-to-brokers/

backpedaling, its now ascertained that prc clients are the main target.
  • #23
  • May 17, 2019 1:39am May 17, 2019 1:39am
https://www.financemagnates.com/fore...rseas-clients/

First Case of Australian Broker Refunding Overseas Clients
  • #24
  • May 20, 2019 9:14pm May 20, 2019 9:14pm
https://www.financemagnates.com/fore...ide-australia/

vantagefx moving overseas clients to cayman islands.
  • #25
  • May 26, 2019 12:41am May 26, 2019 12:41am
My guess is leverage will drop to 1:50 at most (and perhaps even 1:25) so as to align with US and Europe changes.

I certainly cannot see leverage being above 1:50 that's for sure.

It's now just a question of when that will be implemented.
  • #26
  • May 26, 2019 6:06pm May 26, 2019 6:06pm
Quoting PeterE
My guess is leverage will drop to 1:50 at most (and perhaps even 1:25) so as to align with US and Europe changes. I certainly cannot see leverage being above 1:50 that's for sure. It's now just a question of when that will be implemented.
You might have to wait a while for that prediction to come true..
  • #27
  • May 27, 2019 2:17am May 27, 2019 2:17am
IOSCO recommendations regarding spot FX, in particular page 12 -- https://www.iosco.org/library/pubdoc...IOSCOPD613.pdf

ASIC is an IOSCO member -- https://www.iosco.org/about/?subSect...n1=signatories

US and Europe have already implemented changes, ASIC will also
  • #28
  • May 27, 2019 3:36am May 27, 2019 3:36am
Quoting PeterE
IOSCO recommendations regarding spot FX, in particular page 12 -- https://www.iosco.org/library/pubdoc...IOSCOPD613.pdf ASIC is an IOSCO member -- https://www.iosco.org/about/?subSect...n1=signatories US and Europe have already implemented changes, ASIC will also
I'm not saying they won't implement any changes, but forcing brokers to limit leverage to 50:1 isn't going to be one of them.
Maintaining minimum margin requirements is a change they may enforce (some brokers already stop out if free margin drops below 100%).
But they don't actually recommend maxing leverage out at 50:1 in that report. Page 4 indicates concerns regarding some brokers offering leverage as high as 2000:1 (I don't knw any ASIC regulated brokers who offer that).
  • #29
  • May 27, 2019 4:00am May 27, 2019 4:00am
Quoting BubaYaga
{quote} I'm not saying they won't implement any changes, but forcing brokers to limit leverage to 50:1 isn't going to be one of them.
Sure, you could be right.

But I speculate, given what has happened in the US and Europe (IOSCO members) ASIC will synch with the US at 1:50 in the not too distant future.
  • #30
  • May 27, 2019 7:05pm May 27, 2019 7:05pm
Quoting PeterE
{quote} Sure, you could be right. But I speculate, given what has happened in the US and Europe (IOSCO members) ASIC will synch with the US at 1:50 in the not too distant future.
read my post 16. brokers are already moving hnw international clients under the wholesale umbrellato circumvent a leverage check.
  • #31
  • May 27, 2019 7:07pm May 27, 2019 7:07pm
https://www.financemagnates.com/fore...lobal-brokers/

named and shamed. thinkforex , vantagefx.

Two independent sources state that the senior executive of the WOEF of Vantage FX is in custody

the last time something similar happened in china, it was ironfx executives being held hostage. similar resemblance growing..

am not surprised by vantagefx tho. given that circa 2014 after being bought over by mxt global, according to asic documents, the company's top executives all has roots in china.
  • #32
  • May 27, 2019 9:33pm May 27, 2019 9:33pm
depends where overseas and the governing regulatory authority

as for defining customers as "wholesale", ASIC will put the brakes on that workaround
  • #33
  • Aug 2, 2019 9:32pm Aug 2, 2019 9:32pm
Anyone know anything/ heard anything about pending ASIC changes to FX brokers?

I still anticipate Aus will fall in line with the EU and US (particularly regarding margins), but I have nothing official nor whispers.
  • #34
  • Aug 3, 2019 1:39pm Aug 3, 2019 1:39pm
I'm not sure what other brokers are doing, but I think IC Markets have also become regulated by the Seychelles Financial Services Authority. Maybe they will continue to be able to offer high leverage through them, even when the ASIC regulation come into force?
  • #35
  • Aug 3, 2019 7:31pm Aug 3, 2019 7:31pm
Quoting HairyHarley
I'm not sure what other brokers are doing, but I think IC Markets have also become regulated by the Seychelles Financial Services Authority. Maybe they will continue to be able to offer high leverage through them, even when the ASIC regulation come into force?
That's a possibility. But just as the EU and US closed those doors to their own citizens, Aus may also. So I'm not relying on that pathway. But if it is an option if/when margins change, I think most using Aus based brokers will simply follow their broker overseas.
  • #36
  • Aug 4, 2019 3:25pm Aug 4, 2019 3:25pm
You could always try Micro Futures as a way into trading.
https://forum.ampglobal.com/hc/en-us...r-Live-Trading
every Saint has a past. Every Sinner has a Future
  • #37
  • Aug 4, 2019 6:51pm Aug 4, 2019 6:51pm
Quoting turnip15
You could always try Micro Futures as a way into trading. https://forum.ampglobal.com/hc/en-us...r-Live-Trading

margins are good and cant be changed by ASIC
but pair options are very limited, which means it isnt an option for my strategy
https://www.ampfutures.com/trading-info/margins/
  • #38
  • Aug 4, 2019 6:57pm Aug 4, 2019 6:57pm
Quoting turnip15
You could always try Micro Futures as a way into trading. https://forum.ampglobal.com/hc/en-us...r-Live-Trading
If you live outside USA, only means of deposit and withdrawl amp offer is fed wire. And if your trading these micro indices or fx or whatever, you're not going to be makin much, the bank charges for these fed wires is annoying. Not really worth it unless you're trading mini size at least anyway imo.
  • #39
  • Aug 5, 2019 5:34am Aug 5, 2019 5:34am
Quoting BubaYaga
{quote} If you live outside USA, only means of deposit and withdrawl amp offer is fed wire. And if your trading these micro indices or fx or whatever, you're not going to be makin much, the bank charges for these fed wires is annoying. Not really worth it unless you're trading mini size at least anyway imo.
Their Global EU branch will accept cards:
https://www.ampglobal.com

( Scroll to bottom of page )
every Saint has a past. Every Sinner has a Future
  • #40
  • Edited 12:36pm Aug 6, 2019 12:06pm | Edited 12:36pm
Quoting PeterE
Anyone know anything/ heard anything about pending ASIC changes to FX brokers? I still anticipate Aus will fall in line with the EU and US (particularly regarding margins), but I have nothing official nor whispers.
white paper consultation closed today. asic is reviewing suggestions/feedback. will officially put forth mandate in September.

some of the suggestions put forth are around the argument that if you are good, you are good. decreased leverage, only skews the statistics. instead of blowing your account in 1 month, you may now take 6 months to reach the same destination. no real change in retail protection.. proposal is for a more in-dept product knowledge test.

other suggestions put forth regarding client protection is that brokers will adapt a mifid 2 policy. providing a post trade counterparty report on request. allowing clients to make their own judgement call on execution venues/books/price. argument is that real protection of clients should be against broker's execution venues and not on whether the client trade is in a loss. (ie, if a broker claims to be a ecn, however post trade report shows execution venue is a in house ecn or b booked, aka sandbox. client can make the informed decision to switch to another broker)
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