Trading on financial markets is associated with a high level of risks and can lead to a loss of money deposited.Investors residing in Spain are warned that the Spanish Securities and Exchange Commission (CNMV) has determined that, due to their complexity and the risk involved, the purchase of FX products by retail investors is not appropriate/suitable.
July 10, 2018

Dear Clients,

Please be advised that the European Securities and Markets Authority (ESMA) has formally adopted new measures for the provision of contracts for difference (CFDs) to retail customers. Further details regarding this announcement can be found here.

These measures apply to trading service providers regulated in EU jurisdiction such as NFX Capital CY Limited, and will apply from 1st August 2018. In accordance with these measures, we will be making changes to our product leverages, changing the Margin Closeout percentage which is effective on your trading account, and also continue to offer negative balance protection.

The ESMA measures call among others for the following restrictions to be implemented:

       i.    Leverage Limits for CFDs offered to Retail Clients:

  • 30:1 for major currency pairs;
  • 20:1 for non-major currency pairs, gold and major indices;
  • 10:1 for commodities other than gold and non-major equity indices;
  • 5:1 for individual equities and other reference values; and
  • 2:1 for cryptocurrencies.
      ii.    Margin close out rule on a per account basis and standardization of the percentage at which CFDs providers are required to               close-out one or more investor’s open CFDs, at the  level of 50%. 
 
      iii.   Negative balance protection implementation on a per account basis. 
 

In this context, the offered leverage ratios to all retail clients to whom higher ratios are currently offered, will be changed from 1 August 2018 to the ones described above. For others they will remain the same.

Also, please note that the margin level at which the platform will start closing open positions automatically starting from the most unprofitable position, will change from 1 August 2018 from 40% to 50%.

The negative balance protection (NBP) offered by the Company according to which an investor cannot lose more than the deposited funds, will continue to be in effect.

Additionally, please also be advised that the above changes apply to clients categorised as ‘Retail Clients’ in accordance with our Client Categorisation Policy. Depending on your personal circumstances, some clients may be eligible for recategorization as a ‘Professional Client’, in which case the above changes would not apply (however you should be aware that certain protections are waived). For further details of the eligibility requirements for Professional Clients, please refer to our Client Categorisation Policy.

If you would like to be considered for recategorization, please fill in our Change of Client Categorisation Request Form and send it to support@nordfx.com.cy.


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