June 17, AtoZ Markets – Following the list of Forex Brokers Brexit risk management strategies, AtoZ Markets has learned that ATC Brokers and Pepperstone have also braced themselves for the EU referendum next week. As many Forex brokers have decided to take Brexit risk management activities from today onwards, check below what ATC BROKERS and Pepperstone Brexit Risk Management are.
ATC BROKERS Brexit Risk Management
AtoZ Markets team also reached out to ATC BROKERS’ Director of Operations Jen Claudio. She shared with us the insights on their Brexit risk management activities:
“As a result of the upcoming EU Referendum, we will be making margin changes to GBP pairs and the Gold pair effective market close on Friday, June 17, 2016.
As ATC is a pure agency model and does not take the other side of client trades, the company does not hold open positions in the market and are not exposed to market movement. However, to mitigate risk, we will increase the margin by five (5) times for all the GBP cross pairs and we will also increase the margin by two (2) times for the gold pair.
We strongly encourage clients to review their account to ensure all open positions will be adequately margined once these changes take effect, in an effort to minimise exposure as needed on these pairs prior to the announcement.”
Pepperstone Brexit Risk Management
The referendum has been billed as the single biggest currency event of 2016 and has the potential for extreme volatility in GBP and EUR based currency pairs regardless of the outcome. Pepperstone will make temporary changes to our trading terms for margins on GBP and EUR based pairs as well as certain index markets listed below. These leverage changes will apply as of market close on the 18th of June and will be in effect until further notice. New leverage / margin requirements for affected instruments are as follows:
GBP pairs and UK100 maximum leverage: 50:1
EUR pairs and EU indices maximum leverage: 100:1
More information will follow…We kindly advise our clients to carefully consider and evaluate the potential impact of the above changes as well as the event itself on your existing and future positions on these products. Should any further trading terms change on our products, Pepperstone will endeavour to contact you via email, MT4 or by changes made to our website. However, we reserve the right to make further changes without notification such as increased margin requirements, trading restrictions on certain products or any other such matter.
AtoZ Markets’ investigation into the Brexit Risk management continues, we are adding more information about the Forex Brokers’ Brexit risk management strategies. As we’re still waiting for the replies of the other brokers in the market. If your broker is not present on this article, then please check the first list of brokers’ risk management strategies or the third list of Forex brokers that don’t change their leverage.
Still, if your broker is not present on any of these lists, then immediately contact your broker for an update on what their risk management activities are. Are they adjusting the leverage? Will they limit trading on GBP pairs? Prepare yourself for the market volatility amid a possible Brexit in the United Kingdom.
Your broker is not on the list? Contact AtoZ Markets editor team now!