General Market News | Friday 10th June, 2016
Synergy would like to bring to your attention the upcoming British referendum which will decide the country’s future membership of the European Union (the ‘Brexit”vote”). This is set to take place on 23 June 2016.
There is much uncertainty surrounding the event and this can cause the potential for extreme market movements. Traders need to manage their positions carefully and be aware of the possibilities of significant spreads, price gaps and periods of limited liquidity.
We ask our clients to please understand that even a hedged position can be significantly adversely affected by an increase in bid / offer spreads.
In our effort to protect the interests of both our Clients and Synergy against unforeseeable events and to minimise the effects of potentially increased volatility in the market, we will temporarily implement the following preventative measures:
- Effective on the 17 June, margin requirements for Synergy traders will be increased.
- Margin requirements will be increased by 200% for all GBP; EUR and CHF pairs.
- Effective on the market open 20 June Margin Call Levels will be raised from 100% to 150%, and Stop Out levels will be adjusted from 50% to 100%
- Please note that increased margin requirements will also apply to pre-existing positions.
- In the period prior to, during and after the Brexit vote, Synergy will be closely monitoring the market volatility to assess and decide whether additional preventative measures may need to be implemented.
This change may result in an automatic liquidation of positions if there are insufficient funds to meet the new requirements. We therefore kindly request that you review your positions prior to 17 June 2016, and take any measures necessary to ensure that you have sufficient margin to maintain them. You may add funds to your account by visiting our deposit funds page on our website, or close open positions.
Return to normal levels and operation will depend on market conditions and normalisation following the British referendum. It is expected that the above measures will be reversed on or around 27 June 2016.
For any further clarification please do not hesitate to contact our support team by Live Chat, by email to email@example.com or by phone on 61 2 8274 2600.