From 10 August 2017 the German Federal Financial Authority (BaFin) will introduce new regulatory requirements for German domiciled clients, which require that all trading accounts be converted to Limited Risk.

As a result, several notable updates to your trading account will occur in August. These are listed below.

August 4th 2017:

• You will no longer be able to use positions in Stocks, ETFs and Bonds as collateral for margin trading, i.e. haircut of 100% will apply.

August 10th 2017:

• Your account will automatically be converted to a Limited Risk Account which means that there will be no additional payments obligation, i.e. maximum loss can’t exceed your deposit.
• Margin Requirements on FX and CFD instruments will depend on your Net Equity For Margin (NEFM), i.e. your Account Value less the value of Stocks, ETFs and Bonds positions;
  • NEFM below EUR 100,000: No changes to margin requirements
  • NEFM above EUR 100,000: Margin requirements will increase by a factor of 2 compared to standard margin requirements
• Stop-Out procedures are initiated at Margin Utilization levels above 100%

If you have any questions about the transition to your Limited Risk Account please do not hesitate to contact us through the usual channels, or email us at [email protected].