Financial Firms are taking measures to the risk of high volatility and low liquidity ahead of the US Election 

Following the announcement of Dukascopy for taking measures due to the risks of high volatility, low liquidity and significant price gaps on the presidential election day in the USA, Capital Index has just announced that the firm changes the Margin Requirements in order to protect clients against negative balances in the event of gapping markets ahead of the US Election on Tuesday 8 November 2016.

You can Read the announcement of Dukascopy HERE

According to Capital Index announcement:

At 2pm (GMT) on Thursday 3 November 2016, Capital Index’s margin rates will be raised. An additional increase will be applied at 2pm (GMT) on Monday 7 November 2016. These changes can be viewed on the Capital Index website here: http://www.capitalindex.com/us-election-margin-changes/

Capital Index’s Associate Director, Trevor Barwell, comments:
“These margin rates will remain in place until further notice, however, we will be monitoring market events and ensuing volatility closely and if required, we will make further changes. Capital Index will reduce margin requirements back to normal levels when the markets have stabilised.”

Trevor Barwell continues:
“We advise our clients, that if they have open positions during this period, to be aware that margin requirements to maintain their open positions will rise. We recommend that clients monitor their positions carefully and maintain a sufficient account surplus throughout this period, particularly over weekends and before major announcements.”

Trevor Barwell (Associate Director), Capital Index (UK) Limited
www.capitalindex.com

 

 

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