The Belize IFSC regulated RoboForex division announced today limitations on leverage across, MT4, MT5 and cTrader platforms on GBP instruments, as well as “Close only” notifications for MT4, MT5.
As traders know, the June 23rd 2016, UK referendum is approaching for “Brexit”, on the country exiting the European Union (EU). Therefore, all currency pairs with the British Pound (GBP) might get more volatile, and, as a result, the liquidity might reduce significantly.
Interesting to note RoboForex stated they are following the regulator’s (Belize IFSC) recommendations, to make changes in the conditions of trading these instruments in order to decrease risks for company clients. The CySEC regulated RoboForex is not applying these same changes, it will be interesting to see if any other regulators come out with official recommendations to regulated brokers in the days ahead.
From the market opening on June 20th, Monday, and to the market closing on June 24th, Friday, the following restrictions will be applied:
- “Close only” will the only mode for the GBP instruments in MT4 and MT5 platforms. Opening new positions will be unavailable.
- No transactions with the GBP instruments will be allowed in RAMM investment platform.
On June 23rd and 24th 2016, the following changes will be applied to the GBP instruments:
- The leverage for MT4 and MT5 ECN accounts will be 6 times less than the current level.
- The leverage for MT4 and MT5 Standard and Cent accounts will be 20 times less than
the current level.
- The maximum leverage for cTrader accounts will be limited to 1:50 regardless the current level.
On June 27th 2016, all trading conditions will be restored to usual.