CMB leverage change aftermath: After Turkish regulator introduced new leverage cut and deposit requirements, brokers are uncertain about the impact.
16 February, AtoZForex - On the 10th of February, AtoZForex has reported that Capital Markets Board (CMB) of Turkey has required a sweeping series of changes to all leveraged products. Thus, it has increased the minimum deposit size to 50,000 TRY (13,610 USD).
CMB leverage change aftermath
According to the press release involving the Turkey CMB leverage change impact on Turkish Forex brokers, all the SPK Türkiye regulated financial institutions offering leveraged products need to apply the new leverage cut and deposit requirements within 45 days window starting from 10th of February.
Moreover, the SPK states that the leverage cut is will serve as an extra insurance for the new Turkish traders. However, given the current Turkish Economy, it appears that the Turkish brokers will be put in a difficult situation in acquiring new client base. By law, only SPK regulated Forex brokers can offer financial services to the Turkish residents. However, these limitations led many Turkish retail traders to become unregulated Forex scam victims.
Following such drastic changes in the leverage system structure, X-Trade Brokers Dom Maklerski released official stock exchange comment. XTB stated that it expects that the Capital Markets Board of Turkey (CMB) initiative will significantly reduce overall activity in Turkish retail Forex trading.
XTB might limit its operations in Turkey
According to the official stock exchange comment of XTB, the firm is implementing the above requirements currently. However, the XTB is still not able to assess the precise influence of the leverage change by CMB in relation to the client activities on the Turkish market. Moreover, they are still unable to estimate the impact of the change in the client transaction across the Turkish market. The official XTB statement highlights:
"Such significant limitations introduced by CMB could contribute to a significant decrease in the number of clients."
The Polish brokerage adds that such initiative from CMB could lead to the significant limitation of the XTB Group activities on Turkish retail Forex market.
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