Thursday, 9 June 2016

PhillipCapital UK to raise margins ahead of EU referendum

And they even gave me the title! I didn't change a word, dear reader(s). Yes, it's the Thursday night PR email, back by popular demand.

In a move to help protect clients ahead of the EU referendum on 23rd June PhillipCapital UK will be increasing its margin requirements. This will take place in two stages, with the first increase occurring on the 12th June and the second on the 19th June. The increases will encompass all instruments. GBP currency pairs and GBP denominated instrument will see margins raised to 10%, with margins on remaining instruments raised to 5%.

Nice one.

Head of Derivatives Trading, Sean Tan, commenting on the decision, said: "If the events of last January taught us anything, it was that markets can be extremely volatile when a major event occurs. When the SNB removed its EURCHF peg, the Swiss franc went from 1.20 against the euro to 0.975 almost without trading. Such an event can present an extremely risky and worrying time for any investors trading such markets. At PhillipCapital UK we believe that June 23rd could become just such an event. If the UK votes to leave the EU we could experience unparalleled volatility for a period of time and so we are taking this action in the run up to the referendum in order to protect our clients against any extreme market movements."

Well, I can dig it. We're heading for disaster!!!


On a more positive note, I think I've finished my new song. I'll have to play it for a while, and see how I feel about it. I might record it in a rehearsal studio, rather than at home. There are too many noisy cretins in my street. I actually put up a sign: Silence! Pop genius at work! But, to be honest with you, I don't think they can read.