The impact of BREXIT on your trading - Admiral Markets UK reports

According to the result of the referendum, which took place in 2016, Great Britain is to leave the European Union on March 29, 2019 at 23:00. This means that less than 3 months are left. But there are still doubts - both as to whether Brexit will actually take place (and in what form) and what impact it will have on the economy, the financial market, and, interestingly for us traders, also on our accounts with British brokers.

ESMA requires, brokers inform

In one of our December articles we mentioned information obligations on the part of British brokers on Brexit, which were imposed by ESMA. According to the official announcement, the European regulator requires brokers with FCA licenses to notify their clients of possible consequences and the impact of the occurrence of the so-called hard Brexit on their accounts. The result is a newsletter sent today by Admiral Markets.

A popular brand Admiral Markets established in 2009 is owned by the Admiral Markets Group AS capital group. Although the group itself is registered in Estonia, the broker has been operating in Poland for several years under the British flag (Admiral Markets UK).

BREXIT: Possible scenarios

The current terms of the agreement assume the so-called a transitional period that would last until the end of 2020. This would ensure the functioning of all British institutions, including the local Forex brokers, unchanged for almost 2 years. However, it is worth considering the occurrence of a pessimistic scenario consisting in the lack of acceptance of the above-mentioned agreement by the British parliament. Admiral Markets sets out what it would take if such a situation arose, which we publish below.

The message reads:

"1. Any trades you entered into through Admiral Markets UK Ltd prior to UK leaving the EU will remain enforceable and will be accepted by Admiral Markets UK Ltd.

2. Every customer should have access to trading with Admiral Markets UK Ltd. However, customers who make this choice will no longer be protected by the EU rules and regulations and instead will benefit from the protection provided by the legal and regulatory framework Great Britain. When you leave the EU, the provisions of British law will be in line with EU-wide laws.

In addition, we intend to keep the technical support dedicated to Admiral Markets UK Ltd. clients. "

What will happen? Time will tell. The situation will certainly be monitored. The brokers who hold a license in more than one jurisdiction stand on the winning position. Thanks to this, regardless of the decisions of the British parliament on Brexit, such companies will be able to ensure smooth migration of clients and ensure continuity of trade, regardless of the scenario.