FCA regulated retail forex broker Hantec Markets has issued a note to clients outlining increases in margin requirements ahead of next week’s UK Brexit referendum, announcing minimum 4% margin requirement (max leverage 25x) starting next week until a day after the Brexit vote.
The note set out by Hantec reads as follows:
Dear Valued Client,
The United Kingdom EU Referendum (“Brexit” vote) will take place on 23 June 2016. This will create increased market volatility which could potentially lead to significant gaps in pricing and periods where certain markets will become illiquid.
In the period leading up to, during and shortly after this vote we will closely monitor liquidity, market volatility and spreads and want to ensure that you are aware of the risks associated with trading under these circumstances.
Restricted Leverage
As a consequence of the potential for heightened market movements, please be advised that leverage for all accounts will be restricted to 25:1 commencing 19th June until 24th of June and potentially for a short while after this date depending on market volatility. Instruments with fixed margins will also change as follows:
| CFD SYMBOL | Name | Current margin ($) | Brexit margin ($) |
| DAX | Ger30 Pro | 5,000 | 10,000 |
| FTSE | UK100 Pro | 2,000 | 10,000 |
| NQ | Nas100 Pro | 875 | 2,500 |
| ES | SPX500 Pro | 1,406 | 3,000 |
| DM | DJ30 Pro | 1,500 | 3,000 |
| GC | Gold | 1,500 | 4,500 |
| SI | Silver | 1,500 | 4,500 |
| HG | Copper | 1,435 | 1,500 |
| CL | US-Oil Pro | 1,500 | 1,500 |
| NG | NGAS Pro | 1,375 | 1,500 |
| BB | Brent Crude Oil | 1,500 | 1,500 |
| SB | Sugar | 210 | 210 |
| KC | Coffee | 700 | 700 |
| CT | Cotton | 500 | 500 |
| CC | Cocoa | 220 | 220 |
| C# | Corn | 675 | 675 |
| W# | Wheat | 810 | 810 |
| S# | Soya | 930 | 930 |
| AD | AUD | 1,180 | 1,180 |
| BP | GBP | 1,010 | 4,000 |
| CD | CAD | 1,210 | 1,210 |
| EC | EUR | 2,700 | 4,000 |
| JY | JPY | 2,700 | 4,000 |
| NZ | NZD | 1,180 | 1,180 |
| SF | CHF | 1,750 | 4,000 |
| DX | US Dollar Index | 1,650 | 3,000 |
It is therefore extremely important that you are aware of the potential risks surrounding this event and you do not over leverage yourself. You should also ensure that your account is sufficiently funded at all times to hold and maintain your open positions.
Example
Currently if your account is set to 100:1 leverage the margin requirement for 1 standard lot of EURUSD is €1000 and for an account with a leverage of 200:1 leverage the margin requirement is €500. For the period 19th -24th June and potentially for a short while after this date depending on market volatility Leverage will be restricted to a maximum of 25:1 and as such the margin requirement will increase to €4000.
Order Execution
During this period of heightened market volatility and illiquidity your stop and limit orders are not guaranteed to be filled at your order level. Orders are converted to market orders once they are triggered and a lack in market depth and liquidity could result in significant slippage.
If you need to fund your account, please click here for all available funding methods.
Please do not hesitate to contact us if you have any questions regarding this announcement.
Kind regards,
Hantec Markets
Hantec Markets Limited
Hantec House 12-14 Wilfred Street, London, SW1E 6PL
Authorised and Regulated by the Financial Conduct Authority – FRN 502635
www.hantecfx.com | +44 (0)20 7036 0850 | [email protected]