The Henyep group establishes a new regulated entity – Choose your regulator.
As you may know, the European Securities Markets Authority (ESMA) and the Financial Conduct Authority (FCA) have announced new rules for Contracts for Difference (CFDs) and Margin FX trading, that will affect how you trade.
These new rules are designed to offer enhanced protection to retail investors and will apply to HYCM from 30th July 2018.
To be able to continue trading under the conditions you are currently under as stated in the table below, the Henyep Group has established and incorporated a new regulated entity under the Cayman Islands Monetary Authority (CIMA).
The table below presents you with your trading options under our multi-jurisdictional environment:
|Changes affecting you||Cayman Islands Regulator||UK FCA Regulator|
|Leverage||Up to 200:1||Up to 30:1|
|Margin Close Out||〇||〇|
|Cash Rebates Allowed||〇||×|
|Segregation of Funds
with Tier-1 Banks
|Negative Balance Protection||〇||〇|
Should you wish to choose to trade with our new HYCM entity, click “I Want to Transfer” in the Client Portal on or before July 27th 2018.
A new account under the CIMA (Cayman Islands Monetary Authority) will be opened for you by the 30th of July 2018 and your FCA account (including open position(s), credit, and balances) will be transferred to this CIMA account.
After logging into the Client Portal, you may need to agree to the following terms to request for the account transfer.
- I confirm to open a new account under CIMA and my existing account (including any open position(s), credit, and balances) will be transferred to this CIMA account by the 30th of July.
- I declare that I have carefully read and understood HYCM’s Customer Agreement, Terms of Business and all other policies as found here which I fully accept and agree with. I’m electronically signing these documents and that this is a legally binding contractual agreement.
BY agreeing to the terms above, your account (including open positions, credit and balance) will be transferred to a new CIMA account by the 30th of July with the above specified options.
Here is the rule for investors under FCA regulation
- A maximum leverage limit on opening new positions in effect from 30th July 2018;
- 30:1 for major currency pairs
- 20:1 for non-major currency pairs, gold and major indices
- 10:1 for commodities other than gold and non-major equity indices
- 5:1 for individual equities
- 2:1 for cryptocurrencies
- Leverage Limits apply to new positions. If you do not have any open positions on this date, we will update your existing account(s) to default to the above stated leverage limits. Leverage rates for pre-existing positions will remain at the level at which they stood when you executed the opening trades.
- A Margin Close Out rule will be applied on a per account basis, at 50% of minimum required margin. This rule will be in effect with HYCM from 30th July 2018.
- Prohibition on offering monetary and non-monetary benefits (excluding research and information tools) to retail investors. This will be in effect with HYCM from 30th July 2018.
- Negative Balance Protection (“NBP”) on a per account basis, providing a guaranteed limit that your balance will not drop below zero. NBP is already effective on your account. This represents no change to our existing functionality.
When will the new rules come into effect?
The new measures will apply from the 1st August 2018 on a pan-European level however at HYCM, they will apply them from Monday the 30th July 2018.
In preparation for the changes listed above, HYCM’s Agreements have been updated.
By continuing to trade with them, you will be taken as having agreed to the content of the changes.
No further action is required on your part, as the changes are effective automatically.
Please take a moment to carefully review the updated Agreements.
What do I need to do?
These rules will not immediately impact your trading but you need to be aware and adapt your activities, in particular to the change in leverage that will apply to your account and the margin close out rule.
You may need to add funds to your account to keep your positions open or wind down your positions.