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27.06.2016

Margin requirements and the EU summit in Brussels

Dear Customers!
 
On June 23rd , 2016 the residents of the United Kingdom have made historical decision to leave the European Union (EU) and voted for so called BREXIT.
 
As a result of the above mentioned financial markets and particularly currency and precious metals markets are experiencing extraordinary high volatility levels. 
 
In this regard Renesource Capital risk division will continue to implement appropriate risk management measures as necessary for client protection and has taken a short term decision to leave margin requirements being effective from June 9 and June 19, 2016 unchanged by the end of the two – day EU leaders summit in Brussels on June 28 and June 29, 2016 respectively. 
 
We strongly encourage all Clients to carefully consider the risks associated with trading around two – day EU summit in Brussels on June 28 and June 29, 2016.
 
High volatility on Sterling (GBP) currency pairs may result in significant price gaps, widened spreads and slippages which may cause negative equity on client accounts (negative balance).
It is strongly advised that Clients maintain appropriate and sufficient amount of margin on their trading accounts at all times. 
Volatility can trigger Margin Call and following Stop Out (Stop Loss) orders on your trading account. 
We recommend that Clients use Stop orders to limit risks.
 
These conditions will remain in place until further notice, however we will endeavour to revert to our standard terms as soon as we deem possible.
Please follow us on our Twitter account and public announcements/ press releases on our corporate web site.
 
If you require any assistance, please contact your Account Manager or capital markets desk.
 
Kindest regards,
Renesource Capital
 

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.