Margin Increment from Sun, 19 June, and Halt in New Trades on Thurs, 23 June, As Precaution to UK’s EU Referendum
In view of the expected volatility in anticipation of UK’s EU Referendum (the "Brexit" Vote) on Friday, 23 June 2016, Blackwell Global will increase the margins on the following selected instruments from Sunday, 19 June 2016, 9:00pm (GMT).
Instruments that are affected:
|Affected Instruments||Margin Increase||Affected Instruments||Margin Increase|
|AUDCHF||2 times||EURUSD||2 times|
|CADCHF||2 times||GBPAUD||3 times|
|CHFJPY||2 times||GBPCAD||3 times|
|CHFSGD||2 times||GBPCHF||3 times|
|EURAUD||2 times||GBPJPY||3 times|
|EURCAD||2 times||GBPNZD||3 times|
|EURCHF||2 times||GBPSGD||3 times|
|EURGBP||3 times||GBPUSD||3 times|
|EURJPY||2 times||USDCHF||2 times|
|EURNZD||2 times||XAGUSD||2 times|
|EURSGD||2 times||XAUUSD||2 times|
|EURTRY||2 times||#CL||3 times|
In addition, we will halt the opening of new trades for all symbols from Friday, 23 June, 9pm UK time (8pm GMT), up to 1 hour after the release of the polling results. During this period, clients will still be able to close existing trades. The resumption of placing new trades may be subjected to further changes via notification on Blackwell Global’s Company News web page, depending on the market conditions.
Blackwell Global has taken these measures to help our valued clients manage the potential risk through this period of expected volatility and unpredictability. As your broker concerned for your financial security, we suggest to avoid trading during the week of the Brexit vote, that is, Monday, 20 June, to Friday, 24 June 2016, so as to minimise exposure to increased risks.
Please ensure that your margin collateral is properly managed in the period leading up to, during, and shortly after the UK’s EU Referendum – as such periods of heightened volatility can create possibilities of significant price gaps and periods of illiquidity, which can potentially put your account on a margin call. If you have open positions during the affected period, margin requirements to keep those positions open could rise.
We would like to stress that Stop Loss Orders are not guaranteed to be filled at your order level; Stop Orders are converted to Market Orders once triggered, and dislocations in available liquidity could result in significant slippage on Stop Orders.
Blackwell Global will closely monitor market volatility and liquidity, and will reassess the margin requirements after the Brexit vote and make the necessary adjustments thereafter.