Hiya,
UK spread-betting after Brexit will get higher leverage? And can we have Spot-Forex Spread-betting in UK after Brexit with at least 1:100 leverage?
Tnx and best of luck
I can’t see it happening. The Brexit referendum was held in June 2016 and the ESMA limits only introduced in 2018, so the FCA and government could obviously see Brexit coming. Increasing the limits would be a relaxation of current standards and unless something fundamental about the financial sector changes, reversing the ESMA limits now would be an admission by the FCA and government that those limits were wrong.
I can’t actually think what could change in the market that would be a good enough reason for leverage increases in the UK.
Hiya @tommor
Thanks. I understand your points, but the UK government under EU regulation whether if they see the Brexit coming does have obligations to follow the Brussels rules as a member state, Brexit exercised just in January 2021 effectively in practice.
Another case is why non of the UK SpreadBetting brokers does not offer SpreadBetting under Spot-FX asset live price after Brexit? e.g. live price of each pair shall be determined by the current global Spot-FX price and not anything else shall determine the price? In the case of EUR/USD, the Speed-betting gets the exact Spot-FX price in every single second and tick of data?
Tnx and best of luck
I’m not sure I understand all your points. I know nothing literally about spot FX pricing.
Maybe as well to consider the purpose of financial regulators, including the FCA - I believe the purpose of the FCA is not to preserve the wealth of clients and to protect them from sharks, it is to preserve the integrity of the financial sector as a whole, and to protect the firms within it from competition from sharks.
Of course the FCA would say that if they prosecute and exclude firms which have dubious trading practices, then this protects the clients - but they would say that wouldn’t they? You just have to consider, who are the FCA’s clients…