Dear Traders,

On 23rd June the UK will hold a Referendum to decide whether to remain or exit the European Union. This event is commonly called as BREXIT in the media. In this regard our LPs and Banks are going to increase the margin requirements on GBP and EUR based currency pairs and Equity Index CFDs and we are obliged to apply the same margin to our Traders accounts as well.

We are expecting a sharp increase in the margin requirements and decreased leverage prior and after to 23rd June 2016. We are already seeing an increase in market volatility ahead of the vote and expect this to continue over the next 2 weeks. During BREXIT event, we are expecting wide spreads on GBP and EUR based currency pairs and Equity Index CFDs. Also the liquidity may get dry, you may not able to take new positions or you may not able to close the existing ones. We strongly recommend you to reduce your exposure to these currencies and reinforce your open positions by sending extra margins. We don’t assume any responsibility for execution of your orders during that period.

PCM Brokers will raise the margin requirement and limit maximum position sizes on all GBP and EUR based currency pairs and Equity Index CFDs. Details of the margin rate changes and timings will be communicated on Friday 17th June. These temporary risk parameters may persist over the weekend of 25th and 26th June depending on the market reaction to the referendum result.


Mirza
PCM Brokers DMCC
Executive Coordinator