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Important Regulatory Updates

    

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As you may already be aware ESMA (European Securities and Markets Authority) recently announced a temporary product intervention on CFD's effective the 1st August 2018.

Valutrades as always commitment to the principles of transparency, honesty and legislative requirements will be following ESMA's guidance and making the following changes on the weekend of 28/29 July 2018.

Open Positions (MT4 and MT5 platforms), opened before 28-07-2018

1 - Existing positions on ECN symbols - No changes on existing positions and leverage requirements (margin requirement) . ECN symbols will be set to allow closing positions only. (e.g. EURUSD+ stays EURUSD+)

2 - Existing positions on Standard symbols - Positions will be moved to ECN symbols so a position on EURUSD before the 28/29 July 2018 will be the exact same position on EURUSD+ after the 28/29 July 2018. Leverage requirements (margin requirement) remain the same. (e.g. EURUSD becomes EURUSD+)

New Positions (MT4 and MT5 platforms) from 29-07-2018

1 - New super ECN symbols EURUSDv will be created. (EURUSDv)

2 - Standard symbols remain as they are before 28-07-2018 (EURUSD)

3 - New Leverage (Margin) levels to apply on Standard and new Super ECN symbols:

Product Leverage (Margin)
Major FX

(The major currencies are currency pairs comprising any two of the following currencies: US Dollar, Euro, Japanese Yen, Pound Sterling, Canadian Dollar or Swiss Franc)
30 times (3.33% margin)
Minor and Exotic FX

(All currency pairs that are not major)
20 times (5% margin)
Gold 20 times (5% margin)
Major Indices

(The major indices are any of the following equity indices: AUS200, DE30, CAC40, JP225, STOXX50, UK100, US100, US30, US500)
20 times (5% margin)
Commodities

(other than gold)
10 times (10% margin)
Minor Indices

(All indices that are not major)
10 times (10% margin)
Single Stocks 5 times (20% margin)
Crypto Currencies 2 times (50% margin)

 

ESMA has also mandated negative balance protection and stop out levels of 50% on all accounts. Valutrades is proud to have already offered negative balance protection to all clients as well as 50% stop out levels and will continue to do so with no changes. 

Should you have any questions on our of the above please contact us support@valutrades.com to find out more information and receive any assistance you may require

 

Disclaimer:

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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