BOARD

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.

Last News

Trading Schedule for the 2019 Easter Holiday Period

11 April 2019

Please note the amended Darwinex trading schedule for the 2019 Easter Holiday Period.

Please note the amended Darwinex Trading Schedule for the 2019 Easter Holiday Period.

Times are displayed in UK time and changes to regular schedules are highlighted in red.

Instrument

Thursday 18th April  Friday 19th April  Monday 22nd April
FX 22:01:01 Wed – 21:59:50 Thu 22:01:01 Thu – 21:55:00 Fri 22:05 Sun – 21:59:50 Mon
Commodities* 23:00 Wed – 22:00 Thu CLOSED  23:00 Sun – 22:00 Mon 
DARWINs 22:05 Wed – 21:59 Thu 22:05 Thu – 21:55 Fri 22:05 Sun – 21:59 Mon
Indices      
Europe50 23:00 Wed – 22:00 Thu  CLOSED  CLOSED
GDAXI 07:00:00 – 21:00:00  CLOSED   CLOSED
SPX500 23:00 Wed – 22:00 Thu  CLOSED  23:00 Sun – 22:00 Mon
WS30 23:00 Wed – 22:00 Thu  CLOSED  23:00 Sun – 22:00 Mon
NDX 23:00 Wed – 22:00 Thu  CLOSED   23:00 Sun – 22:00 Mon
J225  23:00 Wed – 22:00 Thu CLOSED  23:00 Sun – 22:00 Mon
AUS200 23:00 Wed – 15:00 Thu CLOSED  CLOSED 
FCHI40  23:00 Wed – 22:00 Thu  CLOSED  CLOSED
UK100 23:00 Wed – 22:00 Thu  CLOSED   CLOSED 
SPA35 07:00 – 19:00  CLOSED   CLOSED 
US stocks 14:31 – 20:59   CLOSED  14:31 – 20:59  
Crypto instruments 23:00 Wed – 22:00 Thu   23:00 Thu – 21:55 Fri   23:00 Sun – 22:00 Mon

 

*Please, be reminded that the instrument XAUUSD closes a minute earlier, and opens a minute later, than the rest of Commodities in Darwinex as shown in the table of Darwinex assets and spreads.

Please note during Easter Holidays, swaps will be charged in a different way than on normal weeks. There may be days with swap x6 charges and days without any swap charges at all. The amount of the swap will be similar to that of normal weeks, the only thing that changes is the way it’s charged. The swap rates that appear on our site generally get updated around 19:00 BST and may suffer only minor changes afterwards.

Also note that on Friday, April 19th the US market will be closed. Fx spreads thus may widen considerably. Both traders and investors should avoid setting tight stop loss levels.

The DARWIN Exchange will remain open even if the underlying assets’ market is closed. Should you want to know the standard procedure when you buy/sell a DARWIN whose underlying asset market is closed, we recommend you to read the following Knowledge Base article: Can I buy and sell DARWINs whenever I want?

Do not hesitate to contact us at info@darwinex.com for support.

Happy Easter!

dst

Start of Daylight Saving Time 2019

4 March 2019

Please note our amended trading hours for the three-week-long period between the change in the US from EST to EDT on 10th March 2019 and the subsequent change in the UK from GMT to BST on 31st March 2019.

Please note our amended trading hours for the three week period between the change in the US from EST to EDT on 10th March 2019 and the subsequent change in the UK from GMT to BST on 31st March 2019.

 

Instrument Trading Hours in GMT
FX 21:05 Sun – 20:55 Fri (except 21:00 – 21:01 daily) 
DARWINS 21:05 Sun – 21:00 Fri (except 21:00 – 21:01 daily)
COMMODITIES  
Gold 22:01 Sun – 20:55 Fri (except 20:59 – 22:01 daily)
Silver 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Platinum 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Palladium 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US Crude 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Natural Gas 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
INDICES  
Australia 200 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Europe 50 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
France 40 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Germany 30 07:00 – 21:00 (Mon – Fri)
Spain 35 07:00 – 19:00 (Mon – Fri)
Japan 225 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
UK 100 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US SPX 500 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US Tech 100 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Wall Street 30 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US STOCKS 13:31 -19:59 (Mon – Fri)
CRYPTOCURRENCIES 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)

 

As always, please do not hesitate to get in touch at info@darwinex.com should you need assistance.

Trading Hours for US Presidents’ Day on 18th February 2019

12 February 2019

Please note that the following trading hours will apply on Monday 18th February 2019.

Please note that the following trading hours will apply on Monday 18th February 2019. All times are in GMT+0 (London) time.

Commodities   Monday 18th Febuary 2019
Gold 23:01 Sun – 18:00 Mon
Silver 23:00 Sun – 18:00 Mon
Platinum 23:00 Sun – 18:00 Mon
Palladium 23:00 Sun – 18:00 Mon
US Crude 23:00 Sun – 17:45 Mon
US Natural Gas 23:00 Sun – 17:45 Mon
Indices
J225 23:00 Sun – 18:00 Mon
SPX500 23:00 Sun – 18:00 Mon
NDX 23:00 Sun – 18:00 Mon
WS30 23:00 Sun – 18:00 Mon
US Stocks
All US stocks CLOSED

 


The rest of the assets will trade according to their usual trading time.

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

Trading Hours On Australia Day on 28th January 2019

22 January 2019

Please note that the following trading hour will apply to the AUS200 asset on Monday 28th January 2019 due to Australia Day.

Please note that the following trading hours will apply on Monday 28th January 2019. Times in GMT+0 (London) time.


 

Indices  Monday 28th January 2019
AUS200 06:10 – 22:00

 


The rest of the assets will trade according to their usual trading time.

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

Trading Hours for the US Martin Luther King Day on 21st January 2019

15 January 2019

Please note that the following trading hours will apply on Monday 21st January 2019. All times are in GMT+0 (London) time. Commodities   Monday 21st January 2019 Gold 23:01 Sun – 18:00 Mon Silver 23:00 Sun – 18:00 Mon Platinum 23:00 Sun – 18:00 Mon Palladium 23:00 Sun – 18:00 Mon US Crude 23:00 Sun – 17:45 […]

Please note that the following trading hours will apply on Monday 21st January 2019. All times are in GMT+0 (London) time.

Commodities   Monday 21st January 2019
Gold 23:01 Sun – 18:00 Mon
Silver 23:00 Sun – 18:00 Mon
Platinum 23:00 Sun – 18:00 Mon
Palladium 23:00 Sun – 18:00 Mon
US Crude 23:00 Sun – 17:45 Mon
US Natural Gas 23:00 Sun – 17:45 Mon
Indices
J225 23:00 Sun – 18:00 Mon
SPX500 23:00 Sun – 18:00 Mon
NDX 23:00 Sun – 18:00 Mon
WS30 23:00 Sun – 18:00 Mon

 


The rest of the assets will trade according to their usual trading time.

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

Navidad

Darwinex Trading Hours for the 2018 Christmas & New Year Holiday Period

18 December 2018

Christmas is around the corner! Please find below the Darwinex Trading Schedule for the 2018 Christmas and New Year Holiday Period (all times are displayed in UK time and changes to regular trading hours are highlighted in red). Also note that during the Cristmas and New Year holiday period spreads may widen and swaps may […]

Christmas is around the corner!

Please find below the Darwinex Trading Schedule for the 2018 Christmas and New Year Holiday Period (all times are displayed in UK time and changes to regular trading hours are highlighted in red).

Also note that during the Cristmas and New Year holiday period spreads may widen and swaps may be affected by the ‘turn’ effect. The ‘turn’ effect is a phenomenon that exists in financial markets which is caused by supply and demand for funding over key dates such as year or quarter-end. This can create anomalies in the forward curves for certain currencies, and we are already beginning to see this priced into the year-end swap points that we receive from our liquidity providers.

Christmas 2018

DARWINs Monday 24th December Tuesday 25th December Wednesday 26th December
All DARWINs 22:05 Sun – 18:45 Mon Closed 22:05 Tue – 21:59 Wed
FX Monday 24th December Tuesday 25th December Wednesday 26th December
All FX Instruments 22:05 Sun – 18:45 Mon Closed 22:01:01 Tue – 21:59:50 Wed
Commodities Monday 24th December Tuesday 25th December Wednesday 26th December
Gold 23:01 Sun – 18:45 Mon Closed 23:01 Tue – 21:59 Wed
Silver 23:00 Sun – 18:45 Mon Closed 23:00 Tue – 21:50:50 Wed
Platinum 23:00 Sun – 18:45 Mon Closed 23:00 Tue – 22:00 Wed
Palladium 23:00 Sun – 18:45 Mon Closed 23:00 Tue – 22:00 Wed
US Crude 23:00 Sun – 18:30 Mon Closed 23:00 Tue – 22:00 Wed
US Natural Gas 23:00 Sun – 18:30 Mon Closed 23:00 Tue – 22:00 Wed
Indices Monday 24th December Tuesday 25th December Wednesday 26th December
AUS200 23:00 Sun – 03:30 Mon Closed Closed
STOXX50E Closed Closed Closed
FCHI40 23:00 Sun – 13:00 Mon Closed Closed
GDAXI Closed Closed Closed
J225 23:00 Sun – 18:15 Mon Closed Closed
SPA35 07:00 – 13:00 Closed Closed
UK100 23:00 Sun – 12:50 Mon Closed Closed
SPX500 23:00 Sun – 18:15 Mon Closed Closed
NDX 23:00 Sun – 18:15 Mon Closed Closed
WS30 23:00 Sun – 18:15 Mon Closed Closed
US Stocks Monday 24th December Tuesday 25th December Wednesday 26th December
All US stocks 14:31 – 17:59 Closed 14:31 – 20:59
Crypto Monday 24th December Tuesday 25th December Wednesday 26th December
All Crypto Instruments 22:05 Sun – 22:00 Mon 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed


New Year 2019

DARWINs Monday 31st December Tuesday 1st January Wednesday 2nd January
All DARWINs 22:05 Sun – 21:59 Mon Closed 22:05 Tue – 21:59 Wed
FX Monday 31st December Tuesday 1st January Wednesday 2nd January
All FX Instruments 22:05 Sun – 21:59:50 Mon Closed 22:01:01 Tue – 21:59:50 Wed
Commodities Monday 31st December Tuesday 1st January Wednesday 2nd January
Gold 23:01 Sun – 21:59 Mon Closed 23:01 Tue – 21:59 Wed
Silver 23:00 Sun – 21:59:50 Mon Closed 23:00 Tue – 21:50:50 Wed
Platinum 23:00 Sun – 22:00 Mon Closed 23:00 Tue – 22:00 Wed
Palladium 23:00 Sun – 22:00 Mon Closed 23:00 Tue – 22:00 Wed
US Crude 23:00 Sun – 22:00 Mon Closed 23:00 Tue – 22:00 Wed
US Natural Gas 23:00 Sun – 22:00 Mon Closed 23:00 Tue – 22:00 Wed
Indices Monday 31st December Tuesday 1st January Wednesday 2nd January
AUS200 23:00 Sun – 03:30 Mon Closed 23:00 Tue – 22:00 Wed
STOXX50E Closed Closed 23:00 Tue – 22:00 Wed
FCHI40 23:00 Sun – 13:00 Mon Closed 23:00 Tue – 22:00 Wed
GDAXI Closed Closed 07:00 – 21:00
J225 23:00 Sun – 22:00 Mon Closed 23:00 Tue – 22:00 Wed
SPA35 07:00 – 13:00 Closed 07:00 – 19:00
UK100 23:00 Sun – 12:50 Mon Closed Closed
SPX500 23:00 Sun – 22:00 Mon Closed 23:00 Tue – 22:00 Wed
NDX 23:00 Sun – 22:00 Mon Closed 23:00 Tue – 22:00 Wed
WS30 23:00 Sun – 22:00 Mon Closed 23:00 Tue – 22:00 Wed
US Stocks Monday 31st December Tuesday 1st January Wednesday 2nd January
All US stocks 14:31 – 20:59 Closed 14:31 – 20:59
Crypto Monday 31st December Tuesday 1st January Wednesday 2nd January
All Crypto Instruments 22:05 Sun – 22:00 Mon 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed

 


As always, if you have any queries, please feel free to contact us at info@darwinex.com.

The Darwinex Team wishes you a Merry Xmas and a Happy New Year!

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71 % 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.