Special trading arrangement regarding Brexit ( Important )Publish in2016-06-20
Dear Clients and IBs,
Due to the Brexit referendum within the United Kingdom, that is scheduled to take place on 23rd June 2016, the market will be extremely volatile. All banks and liquidity providers will increase the margin requirements and maintenance margin ratio in order to maintain effective trading under extreme market condition. Therefore, we will adjust the related margin requirements and other settings as follows before and after the stated date,
1. After market close on 21st Jun (HKT 22nd Jun, 4am), the margin requirement of spot gold will be USD 2,000 per lot, the margin requirement of spot silver will be USD 4,000 per lot and the margin requirement of RMB LKG will be RMB 10,000 per lot. All related lock position and exit margin requirements will be increased proportionally;
2. When the market closes on 22nd Jun (HKT 23rd Jun, 4am), all limit orders which have not been executed will be cancelled. From 23rd Jun to market close on 24th Jun, all new limit orders will not be accepted. All placed new limit orders will be deleted manually;
3. Starting from 23rd Jun, the difference between the market price and open orders’ stop loss or take profit (including change in limit orders) will be at least USD 10 for spot gold, USD 0.5 for spot silver and RMB 3 for RMB LKG;
4. During trading period from 23rd Jun to 24th Jun market close, the spread of all commodities will reflect the market spread according to the market condition, which may be higher than the normal spread by several times. We suggest the clients should control the volume of open positions to avoid unnecessary loss during extreme market condition;
5. Clients should be aware of the open lock positions when the spread widened. This will also lead to amplify the floating loss and may trigger auto forced cut loss exit. Therefore, clients should review the lock positions situation, reduce open lock positions and reduce trading cost.
6. Before or after the release of the poll result, or during the future market closure period (HKT 5am to 6am), the market liquidity is very thin. The market may not accept new orders temporarily, or can only accept part of the new orders, without prior notice.
The above measures will be taken until this weekend. If the market condition is stable, the above adjustments will be cancelled earlier. Thank you for your attention.
First Asia Merchants Bullion Limited