Updates to Trading Conditions During COVID-19 Pandemic

Due to the increased regularity of extreme volatility events triggering pricing limits/outages affecting our products, we may make changes to our trading conditions on some of our trading symbols. Details of these changes are provided below:

23/04 - Important: Oil Instruments Margin Changes


We would like to inform you of changes related to our Commodity oil products.

Oil Margin Increases

Due to recent market volatility in the Crude Oil Futures markets, we are further increasing margin rates on Oil symbols from 12 PM today (BST).

 

Symbol

Current Margin

New Temporary Margin

USOIL

5.00%

10.00%

UKOIL

5.00%

10.00%

WTI.fs

5.00%

10.00%

BRENT.fs

5.00%

10.00%


Note: These changes in the margin are not applicable to FCA Retail Clients.

If you intend to hold open positions during this time, please monitor your trades carefully and ensure you retain a sufficient margin in your account.

Margin requirements may continue to be changed on short notice or without notice if we deem the market dynamics warrant such action. Up-to-date margin requirements are displayed in the Specification detail of the symbols in the Market Watch window of the trading platform.

Commodity Cash CFDFinancing Charges

Please note that financing charges have increased markedly this week. Take this into consideration in your trading strategies.

Close Only Activation

Until further notice, we are changing all Oil symbols to ‘Close Only’ status with immediate effect.

Negative Pricing

Please be aware that in the event of the underlying oil market pricing falling below zero(negative prices) our platform will not publish pricing until the price returns to a positive price.

Price Cessation

We may close all oil product positions if the price falls close to zero or significantly reduced liquidity causes the underlying market to act irrationally. We can not guarantee the price at which positions are closed.

Trading Restrictions

In times of high volatility and low liquidity, there may be instances where one direction of trading (long or short) is not permitted or new positions are unable to be opened. When such a trading restriction is applied, market orders or triggered pending entry orders will be rejected and deleted. We may change the trading status of a particular instrument at any time and without prior notice.


While we will endeavor to communicate any changes to your trading conditions ahead of any adjustment, given the extreme market conditions and the speed at which the market dynamics change we may not be able to do so. Please ensure you actively manage your positions and margin accordingly.

During these presented events in the oil market, we recommend you trade this product with caution.

If you have any questions about the above changes, please contact your Account Manager.

9/04 - Margin Rate Changes ahead of OPEC meeting

We would like to inform of margin changes that apply to all clients with the exception of FCA Retail clients who’s margin rates will not change.

Margin Increases

We are temporarily increasing the Oil symbols margin rates at 12PM GMT time from today due to an OPEC meeting which is likely to increase market volatility.

We expect to be in a position to restore to normal margin rates after the Monday open. Please take this into consideration in your trading strategy.

 

Symbol

Current Margin

New Temporary Margin

USOIL

0.50%

2.00%

UKOIL

0.50%

2.00%

WTI.fs

1.00%

2.00%

BRENT.fs

1.00%

2.00%

 

Margin Reductions

With immediate effect Gold and Silver Future CFD will reduce to their normal 1% margin requirement.

On Tuesday April 14  the following symbols will return to their normal margin rates.

Symbol

Normal Margin Rate

SWI20

0.50%

CN50

1%

FRA40

0.50%

HK50

0.50%

IT40

0.50%

NETH25

0.50%

SGFREE

0.50%

SPA35

0.50%

If you have any question on this matter please contact your Relationship Manager.

 

25/03 - Restrictions on European Indices

Due to the extreme volatility in the equity markets some European exchanges have imposed restrictions upon short selling of equities. As a result, we will be limiting a number of European Index symbols to only Long/Buy trading. This means you can only enter into new Buy/Long positions. You will continue to be able to close or reduce any new or pre-existing positions.

In addition to the above we will be increasing the margin rate on these symbols from 0.5% to 2% for Non-ESMA clients.

Below are the changes to be effected today

Symbol

Trading Restrictions

New Margin Rate

CAC40.fs

Long/Buy Only

2%

FRA40

Long/Buy Only

2%

IT40

Long/Buy Only

2%

NETH25

Long/Buy Only

2%

SPA35

Long/Buy Only

2%

 

Given the increased margin requirement please urgently review your free margin sufficiency and trading strategy.

We will continue to monitor the exchanges for changes in their restrictions with a view to reverting to normal conditions as soon as possible.

If you have any question on this matter please contact your Relationship Manager.

 

 

23/03 - US Market Indices Limit Down Price Thresholds

We are writing to let you know that a number of  US Share Indices (Cash and Futures) have trading restrictions due to limit down rules where the US Indices markets hit the Limit Down price thresholds.

The Limit Down price is the maximum allowable decline in the price of a stock or commodity in a single trading day. The limits were introduced to forestall unusual market volatility and counteract the panic selling that tends to compound an initial price decline.

When the market goes below the Limit Down threshold we will stop pricing and you will not be able to execute trades at the BID Price via your terminal. If the market returns above the threshold then normal pricing and execution access will resume.

The following indices have had their Limit Down thresholds hit today:

Market

Limit Down Futures Level  

NAS100.fs

6628.75

US500 and S&P.fs

2174.00

US30 and DJ30.fs

18,086.00

US2000

962.40

 

Please note these levels are an indication of Futures pricing levels and the Cash CFD pricing will typically stop once that futures level is reached. As such, you may experience instances where you are unable to trade these indices on our platform in the event the Limit Down thresholds have been hit.

As a result of US Indices being in down limit so early in the trading day, this may result in European Cash Indices not pricing until the underlying European Futures market opens.