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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.

Last News

Darwinex Amended Trading Hours (US Independence Day)

27 June 2018

Please note the amended Darwinex trading hours for the upcoming US Independence Day holiday on 3 & 4 July 2018 (all times are in UK time).  Instrument 3 July 2018 (Tue) 4 July 2018 (Wed)  FX 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed   DARWINS 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed […]

Please note the amended Darwinex trading hours for the upcoming US Independence Day holiday on 3 & 4 July 2018 (all times are in UK time).

 Instrument 3 July 2018 (Tue) 4 July 2018 (Wed)
 FX 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed
  DARWINS 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed
 COMMODITIES    
Gold* 23:01 Mon – 21:59 Tue 23:01 Tue – 18:00 Wed
Silver* 23:00 Mon – 22:00 Tue 23:00 Tue – 18:00 Wed
Platinum* 23:00 Mon – 22:00 Tue 23:00 Tue – 18:00 Wed
Palladium* 23:00 Mon – 22:00 Tue 23:00 Tue – 18:00 Wed
US Crude* 23:00 Mon – 22:00 Tue 23:00 Tue – 17:45 Wed
Natural Gas* 23:00 Mon – 22:00 Tue 23:00 Tue – 17:45 Wed
 INDICES    
Australia 200 23:00 Mon – 22:00 Tue 23:00 Tue – 22:00 Wed
 Europe 50 23:00 Mon – 22:00 Tue 23:00 Tue – 22:00 Wed
France 40 23:00 Mon – 22:00 Tue 23:00 Tue – 22:00 Wed
Germany 30 07:00 – 21:00 07:00 – 21:00
Spain 35 07:00 – 19:00 07:00 – 19:00
Japan 225* 23:00 Mon – 18:15  Tue 23:00 Tue – 18:00 Wed
 UK 100 23:00 Mon – 22:00  Tue 23:00 Tue – 22:00 Wed
 US SPX 500* 23:00 Mon – 18:15 Tue 23:00 Tue – 18:00 Wed
 US Tech 100* 23:00 Mon – 18:15 Tue 23:00 Tue – 18:00 Wed
Wall Street 30* 23:00 Mon – 18:15 Tue 23:00 Tue – 18:00 Wed
 CRYPTO    
All Crypto Instruments  22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed
*Amended Darwinex trading hours.

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

Turkey General Elections on June 24th, 2018

21 June 2018

On Sunday June 24th, 2018, the first  round of general elections will be held in Turkey. If you plan to stay in the market during the weekend in pairs related to the Turkish lira (USDTRY, EURTRY y GPBTRY), please make sure you post margin / equity in your account as volatility is expected to increase […]

On Sunday June 24th, 2018, the first  round of general elections will be held in Turkey.

If you plan to stay in the market during the weekend in pairs related to the Turkish lira (USDTRY, EURTRY y GPBTRY), please make sure you post margin / equity in your account as volatility is expected to increase heading into the elections and upon Sunday’s market open. Although we are not planning to introduce changes to our margin requirements, please be informed that Darwinex reserves the right to change margin requirements as we move closer to the elections and depending on the outcome.

Should we decide to introduce any changes to our trading conditions, we’ll  contact you via email, blog post and social media as soon as possible.

Please do not hesitate to contact us at info@darwinex.com should you need assistance.

Darwinex Trading Hours for ucomping Bank Holiday in Australia (11 June 2018)

7 June 2018

Please note the amended Darwinex trading hours for the upcoming Bank Holiday in Australia on 11 June 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:05 Sun – 22:00 Mon   DARWINS 22:05 Sun – 22:00 Mon  COMMODITIES   Gold 23:00 Sun – 22:00 Mon Silver 23:00 Sun – 22:00 Mon Platinum 23:00 Sun – 22:00 Mon Palladium 23:00 Sun – 22:00 Mon US Crude 23:00 […]

Please note the amended Darwinex trading hours for the upcoming Bank Holiday in Australia on 11 June 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:05 Sun – 22:00 Mon
  DARWINS 22:05 Sun – 22:00 Mon
 COMMODITIES  
Gold 23:00 Sun – 22:00 Mon
Silver 23:00 Sun – 22:00 Mon
Platinum 23:00 Sun – 22:00 Mon
Palladium 23:00 Sun – 22:00 Mon
US Crude 23:00 Sun – 22:00 Mon
Natural Gas 23:00 Sun – 22:00 Mon
 INDICES  
Australia 200* 08:10 – 22:00
 Europe 50 23:00 Sun – 22:00 Mon
France 40 23:00 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 08:00 – 19:00
Japan 225 23:00 Sun – 22:00 Mon
 UK 100 23:00 Sun – 22:00 Mon
 US SPX 500 23:00 Sun – 22:00 Mon
 US Tech 100 23:00 Sun – 22:00 Mon
Wall Street 30 23:00 Sun – 22:00 Mon
*Amended Darwinex trading hours.

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

Important announcement re swaps

31 May 2018

Please be informed that starting on Thursday, 7 June 2018, Fx and XAUUSD swaps will be charged in triple size on Thursdays (instead of Fridays). Below you can find a brief summary of the different swaps charges for different assets.  Instrument Swaps   FX Daily at 17:00 NY City time (in triple size on Thursdays)   […]

Please be informed that starting on Thursday, 7 June 2018, Fx and XAUUSD swaps will be charged in triple size on Thursdays (instead of Fridays).

Below you can find a brief summary of the different swaps charges for different assets.

 Instrument Swaps 
 FX Daily at 17:00 NY City time (in triple size on Thursdays)
  COMMODITIES
Gold Daily at 17:00 NY City time (in triple size on Thursdays)
Rest of Commodities Daily at 17:00 NY City time (in triple size on Wednesdays)
 INDICES  Daily on market close (in triple size on Fridays)
*Since Thursday, 7 June 2018.

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

Amended Trading Hours due to US Memorial Day & UK Spring Bank Holiday (28 May 2018)

22 May 2018

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time). Important: as explained in our Help Section, if you open / close an investment in a DARWIN that has an open trade in an asset which market […]

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time).

Important: as explained in our Help Section, if you open / close an investment in a DARWIN that has an open trade in an asset which market is closed (see amended trading hours in red below), the transaction will not be carried out immediately,  the investment will show up in your investor platform once it has been executed by our system when the index/commodity resumes trading on Monday night.

 Instrument Trading Hours
 FX  22:00 Sun – 22:00 Mon
  DARWINS  22.05 Sun – 22.00 Mon
 COMMODITIES
Gold* 23:00 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
Natural Gas* 23:00 Sun – 17:45 Mon
 INDICES
Australia 200 22:05 Sun – 22:00 Mon
 Europe 50 22:05 Sun – 22:00 Mon
France 40 22:05 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225*  22:05 Sun – 18:00 Mon 
 UK 100* Closed
 US SPX 500* 22:05 Sun – 18:00 Mon
 US Tech 100* 22:05 Sun – 18:00 Mon
Wall Street 30* 22:05 Sun – 18:00 Mon
*Amended Darwinex trading hours.

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

Amended trading hours during German Public Holiday (21 May 2018)

16 May 2018

Please note the amended Darwinex trading hours for the German Public Holiday on 21 May 2018 (all times are in UK time).  Instrument Trading Hours  FX  22.05 Sun – 22.00 Mon   DARWINs  22.05 Sun – 22.00 Mon  COMMODITIES 23.00 Sun – 22.00 Mon  INDICES Australia 200 22.05 Sun – 22.00 Mon  Europe 50 22.05 Sun […]

Please note the amended Darwinex trading hours for the German Public Holiday on 21 May 2018 (all times are in UK time).

 Instrument Trading Hours
 FX  22.05 Sun – 22.00 Mon
  DARWINs  22.05 Sun – 22.00 Mon
 COMMODITIES 23.00 Sun – 22.00 Mon
 INDICES
Australia 200 22.05 Sun – 22.00 Mon
 Europe 50 22.05 Sun – 22.00 Mon
France 40 22.05 Sun – 22.00 Mon
Germany 30* Closed
Spain 35 07:00 – 19:00
Japan 225  22.05 Sun – 22.00 Mon 
 UK 100 22.05 Sun – 22.00 Mon
 US SPX 500 22.05 Sun – 22.00 Mon
 US Tech 100 22.05 Sun – 22.00 Mon
Wall Street 30 22.05 Sun – 22.00 Mon
*Amended Darwinex trading hours.

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