Brexit referendum is becoming more and more frustrating for most of the economies, from official state representative to different banks and brokers and Russian exchange is not an exception.
The Moscow Exchange has made an announcement for all its clients that as the UK referendum on membership in the European Union on 23 June 2016 is getting closer and closer, we can expect increase volatility in some instruments traded on Moscow Exchange. To reduce the risks to member firms and NCC Clearing Bank (the central counterparty), the Moscow Exchange will raise initial margin requirements for EURUSD and GBPUSD FX futures contracts, the most exposed to this volatility, followingly:
Moscow Exchange will raise margin requirements on EURUSD and GBPUSD FX Futures contracts in two stages next week, as follows:
- From 4.0% to 5.5% as of 1900 MSK on 20 June; and
- From 5.5% to 7.0% as of 1900 MSK on 21 June.
After the announcement of the referendum results, the Exchange will review the margin requirements again.
ETF’s increasing popularity in Taiwan
The Taiwan Stock Exchange has informed on Thursday that the Taiwan Financial Supervisory Commission (FSC) adjusted regulation from 2014, which allows the listing of more diverse exchange-traded products, has helped the Taiwan’s ETF market to widen extensively and reaches now around 10% of total turnover on the TWSE. As for comparison, it was only 1.9% in 2014.
According to the latest data from May 2016, over $7.64 billion was invested in the 46 ETFs listed on the TWSE with 18 leveraged and inverse ETFs.
Moreover, the number of ETFs on the TWSE is about to increase to even 49 by the end of June 2016, as the Yuanta EURO STOXX 50 ETF and the Yuanta Nikkei 225 ETF were listed in June 15 and the Fubon Nasdaq-100 ETF is about to be listed in June 17.
TWSE Chairman Sush-der Lee said:
“In just a few short years, Taiwan has emerged as a truly global ETF market. Investors are able to trade many of the world’s major indexing products – a prospect that is attractive to both professional and occasional investors. The growing availability of more complex products, such as inverse and leveraged ETFs are also providing more investment alternatives for experienced investors.”
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