Hi Traders
Received an email today from FXCM my forex broker that the French and Spanish authorities have advised that they will not be allowing short positions on the FRA40 and the ESP35. Below is the what they sent.
Dear Client,
Thank you for your continued business with FXCM.
As a valued client, we wanted to provide you with an update on several of our instruments. In light of current market conditions, several European regulators, including France’s “Autorité des Marchés Financiers” and Spain’s “Comisión Nacional de Mercado de Valores”, have imposed limits on short positions in their respective markets. These newly imposed limits will impact the FRA40 and the ESP35 CFD contracts offered by FXCM.
Effective at market open at 5PM EDT Sunday 22 March, we will only allow clients to open long positions. Any clients with existing short positions will have their settings on these positions set to Close Only.
Given the extraordinary market conditions we continue to see, FXCM anticipates that there could be additional changes to come. You can always find the most up to date information regarding client impact as a result of market changes here.
Will be watching carefully what other countries follow suit and limit short selling.
Cheers
Blackduck