Brokers and the UK Election: When Not Raising Margin Requirements is an Advantage

[kreslik.news]

We’ve been through a plethora of elections across the globe during the past year. Starting from the UK Brexit referendum, through to the US presidential election, brokers have identified certain risks to their books and have taken appropriate measures.

A year into the post-Brexit world, we are starting to see some pullback from major brokers when it comes to managing political risks. While 6 months ago the UK election would surely have signified another batch of margin increases, this time around brokers are taking a more relaxed approach towards the key risk event for the British pound.