Restrictions on leverage in the US. Australia is tightening the rules.

NFA (National Futures Association), US forex supervisory and other financial markets, decided this week to introduce restrictions on the maximum leverage of FX transactions for UK pound couples. So far, the maximum leverage they could offer American brokers it was 1:50 for the major currency pairs and 1:20 for the so-called "Exotic", ie instruments with clearly less liquidity (and usually also greater volatility). The new provisions are to limit the leverage on pairs from GBP to 1:20, regardless of the type of instrument. This means that, above all, transactions on such pairs as GBP / USD, EUR / GBP and GBP / JPY will require 150% more margin than before.

At today's (08/11/2016) exchange rate, the leverage of 1:50 means that for a 1.0 lot transaction on GBP / USD you need GBP 2, which is less than PLN 000. After the amendments come into force, the requirements will increase to GBP 10, which is over PLN 000.

It is true that Polish traders do not concern these changes, however, the native KNF likes to observe changes behind the Ocean, so it is not out of the question that we will not meet soon with the idea of ​​another reduction of the siphon.

Meanwhile, the Australian government plans to modify the law on the holding of client funds by brokers offering trading on OTC derivatives (i.e. primarily Forex brokers). The existing regulations allow Australian brokers to use funds deposited on their accounts by traders in certain situations. Obviously, such a solution is not the safest one and may lead to abuses. This is about to change. The government wants to introduce an amendment to the act as soon as possible, which will force the complete separation of clients' funds from the broker's capital. However, we will have to wait for this, because at least a one-year transition period has already been announced as a time for brokers to prepare for the entry into force of the new regulations.