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Brexit & FCA regulation

27 June 2016

As you possibly know, the UK voted “out” on the European Union membership referendum last week.

brexit-800x500

Many non UK customers are wondering about the implications for FCA (UK) regulated companies like Darwinex, who use a MiFID passport to operate in other EU countries.

Neither us nor our compliance advisors have the benefit of a crystal glass, but what we know is:

  1. Short term, until further instruction, it’s business as usual
  2. Medium term, 3 scenarios open up:
    1. Bregret: The UK decides that the outcome of the referendum wasn’t conclusive and backtrack
    2. Amiable divorce: UK – EU negotiations minimize change – no impact on investment activities
    3. Sour grapes: UK – EU exit negotiations turn sour, and UK leaves

Bregret

Whilst the outcome of the referendum was “out”, the result was narrow (51.9% vs. 49.1%) and unsurprisingly significant debate has emerged on whether a narrow simple majority outcome warrants the potential consequences of the exit effort.

At the time of writing, the UK has yet to formally invoke Article 50 in the Lisbon Treaty to request out of the EU. David Cameron has resigned and handed-over the decision to a new Conservative Leader – a successor unlikely to be found before October 2016.

A lot can happen between now and then…

Amiable divorce

Should the UK invoke article 50 the fact remains that:

  1. London is currently the EU’s unquestioned financial capital
  2. Most financial institutions in the EU had enough to worry about before Brexit
  3. In the event of a Brexit, most incumbents have more to lose by giving up the current status, than they have to win from any alternative set-up

Both sides to the table know this:

  1. The UK knows there’s an awful lot of jobs in South England at risk if London (and the FCA) loses their pre-eminent status
  2. The EU knows European Banks can ill afford another construction site looking for a new home to their capital markets activities

Which means: easiest way out would be to change everything for everything to remain the same. The Markets in Financial Instruments Directive (MiFID) is the master legislation that harmonises regulation for investment services… in the European Economic Area, which comprises the 28 EU member states plus Iceland, Norway and Liechtenstein.

If you ask a humble Fintech CEO, leaving MiFID as it is and applying it to 27 member states of the EU plus UK, Iceland, Norway and Liechtenstein looks like a relatively pain-free way out of the conundrum 🙂

In this scenario, when it comes to financial regulation, Brexit remain a wikipedia entry & a couple of weeks of stress in the market.

Sour grapes

Remainer or Leaver, the fact remains that a majority of UK citizens did vote to leave the EU.

The UK has sent a VERY clear message to European Union, and the message wasn’t lost on off-mainstream but growing political leaders in France, Netherlands, etc. who have requested follow-up referenda. This might tempt Ms Merkel into a hawkish stand on negotiation. Be tough with the Brits to fight off more referenda. The price to be paid would be sour divorce negotiations between the UK and EU: EU leaders would shoot the UK (hurt the City) in their own feet (EU banks would suffer the most).

Should grapes really turn sour, then thousands of European Financial institutions – including pretty much every European Fintech start-up – will seek a new home base to passport regulated activities into the remainder of the European Union. This will be a huge task with TONS of time wasted on tasks other than serving customers – which will imply a LOOOONGG transition period into an uncertain set-up.

Were this to happen, we’ll move giving plenty of notice & mutate into a legally new Darwinex, with the same old mission to serve active traders & investors.

The road from here: EVOLUTION!

Brexit or not, we still live in a world where the less you own, the worse you invest.

So, Mr. Cameron, Ms. Merkel, Mr. Johnson & Ms. Le Pen: go ahead and waste everybody’s time and money changing the fine print.

Meanwhile, we’ll continue to re-imagine the investing game: by the time the new UK Premier is even known and banks appoint their Brexit committees, we’ll have released a TON of functionality empowering active investors.

Bregret, Brexit or even end of the EU: the impact of Brexit on the independent traders’ movement is this blog-post.

Let’s face it, we’ve all got bigger fry going on.

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apalancamiento esma

NextEra Energy Stock Split 4:1

19 October 2020

The NextEra Energy stock split is approaching. At Darwinex we will apply the stock split on October 27th.

The NextEra Energy stock split is approaching. $NEE shares will be split 4-for-1. The number of shares will be multiplied by 4 and share prices divided by this same value.

At Darwinex we will apply the stock split on Tuesday October 27th at market open.

In live accounts we will adjust open position to the split without the need to close and reopen trades. Pending orders will be cancelled. In MT5, the hedged positions will be closed and the split will be applied to the resulting net position.

In demo accounts we will close all open positions in $NEE on Monday afternoon. Pending orders will be cancelled.

$NEE stocks will be available for trading from Tuesday, October 27th, at the post-split price.

As always, at info@darwinex.com we’ll be happy to assist you!

End of Daylight Saving Time in Europe (October 25th 2020)

Please note that Daylight Saving Time (DST) ends in Europe on Sunday October 25th 2020 but our MT4 nd MT5 servers’ time is not changing until Sunday November 1st 2020 when DST ends in the US.

Please note that Daylight Saving Time (DST) ends in Europe on Sunday October 25th 2020 but our MT4 nd MT5 servers’ time is not changing until Sunday November 1st 2020 when DST ends in the US.

This means that there will be 1 week (October 25th through November 1st) where, for European users, most markets will open 1 hour earlier than during European DST, e.g. FX market will open at 21:04:01 GMT.

Instrument Trading Hours (GMT)
FX 21:05 Sun – 20:55 Fri (except 20:59:50 – 21:04:01 daily) 
DARWINS 21:05 Sun – 20:55 Fri (except 20:59 – 21:05 daily)
COMM.  
XAUUSD 22:01 Sun – 20:55 Fri (except 20:59 – 22:01 daily)
XAGUSD 22:00:01 Sun – 20:55 Fri (except 20:59:50 – 22:00:01 daily)
XTIUSD 22:00 Sun – 20:55 Fri (except 21:00:01 – 22:00 daily)
XNGUSD 22:00 Sun – 20:55 Fri (except 21:00:01 – 22:00 daily)
INDICES  
AUS200 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
STOXX50 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
FCHI40 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
GDAXI 01:30 – 21:00 (Mon – Fri)
SPA35 07:00 – 19:00 (Mon – Fri)
J225 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
UK100 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
SPX500 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
NDX 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
WS30 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US STOCKS 13:31 -19:59 (Mon – Fri)

As always, at info@darwinex.com we’ll be glad to assist you with any question you may have!

apalancamiento esma

Margin increase for EURGBP and EURJPY this Friday (Professional Clients)

14 October 2020

Our margin requirement for the EURGBP and EURJPY pairs for Professional Clients is changing this Friday, October 16th 2020, around 17:00 BST.

Our margin requirement for the EURGBP and EURJPY pairs for Professional Clients is changing this Friday, October 16th 2020, around 17:00 BST.

The measure is due to the recent increase in market volatility.

The new margin requirement will be 1% for both EURGBP and EURJPY, replacing the previous 0.5%.

It will remain in place until further notice and will affect both existing and new positions.

Kindly make sure you have enough available margin and equity in your account for the new margin level.

Need help? Please don’t hesitate to contact us at info@darwinex.com.

apalancamiento esma

Discontinuation of cryptocurrencies from 2021

15 September 2020

From 2021 Darwinex will no longer offer cryptocurrencies. As a first step, on Monday 21 September we will deactivate the creation of new accounts.

From 2021 Darwinex will no longer offer cryptocurrencies. Their low demand from our customer base does not justify the regulatory risk involved.

As a first step towards the discontinuation of cryptocurrencies, on Monday 21 September we will deactivate the creation of new accounts.

The cryptocurrency accounts already opened will be able to continue operating until the end of the year.

Amended Trading Hours U.S. Labor Day 2020

27 August 2020

Please note the amended Darwinex trading hours for the upcoming U.S. Labor Day on September 7th, 2020. All times are UTC.

Please note the amended Darwinex trading hours for the upcoming U.S. Labor Day on September 7th, 2020. All times are UTC.

Labor Day 2020

For your convenience:

– Normal DARWIN trading hours

– Normal FX/CFD trading hours

– Annual Calendar of Amended Darwinex Trading Hours

Apple And Tesla Stock Splits

25 August 2020

Tesla’s and Apple’s stock splits are approaching. As of August 31st, Tesla shares will be split 5-for-1, and Apple’s 4-for-1. Existing shares of each company will be multiplied by 5 and 4, respectively, and their share prices divided by those same values. At Darwinex we will apply the stock split on the weekend of August […]

Tesla’s and Apple’s stock splits are approaching. As of August 31st, Tesla shares will be split 5-for-1, and Apple’s 4-for-1. Existing shares of each company will be multiplied by 5 and 4, respectively, and their share prices divided by those same values.

At Darwinex we will apply the stock split on the weekend of August 29th.

In live accounts we will adjust open positions in $AAPL and $TSLA to the split without the need to close and reopen trades. Pending orders will be cancelled.

In demo accounts, however, we will close all open positions in $AAPL and $TSLA on Friday afternoon. Pending orders will be cancelled.

Both $AAPL and $TSLA will be available for trading from Monday, August 31st, at post-split prices.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. -- % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.