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Phillip Capital Sean Tan

PhillipCapital UK to raise margins ahead of EU referendum


In a move to help protect clients ahead of the EU referendum on 23 June, PhillipCapital UK will be increasing its margin requirements. This will take place in two stages, with the first increase occurring on the 12th June and the second on the 19 June. 

The increases will encompass all instruments.
GBP currency pairs and GBP denominated instrument will see margins raised to 10 per cent, with margins on remaining instruments raised to 5 per cent.

Sean Tan (pictured), Head of Derivatives Trading, says: “If the events of last January taught us anything, it was that markets can be extremely volatile when a major event occurs. When the SNB removed its EURCHF peg, the Swiss franc went from 1.20 against the euro to 0.975 almost without trading. Such an event can present an extremely risky and worrying time for any investors trading such markets.
At PhillipCapital UK we believe that June 23rd could become just such an event. If the UK votes to leave the EU we could experience unparalleled volatility for a period of time and so we are taking this action in the run up to the referendum in order to protect our clients against any extreme market movements.”

This change is planned to be temporary and depending on market conditions following the vote, PhillipCapital UK will look to return the margin requirements to their current levels.

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