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.
Yours faithfully,
First Asia Merchants Bullion Limited