ESMA and FCA Inform Regulated Firms About Changes to Capital Requirements

[kreslik.news]

Following the recently announced measures to limit the availability of leverage to retail traders as well as a mandatory negative balance protection, European regulators have informed licensed retail brokerages of the necessity to review their permits.

According to a letter sent to brokerages, firms are also instructed to carefully reassess their business models. The regulatory changes are expected to impact future revenues across the industry with potential requirements for revision of the capital and the liquidity of a number of brokers.

Based on the new conduct rules, firms will have to reflect any changes to their business expectations in their ongoing Internal ... (read more)