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ESMA Measures – Important Information which may affect your trading

Hantec Markets will put the following measures into force on 31st July 2018.

The product intervention measures ESMA has adopted under Article 40 of the Markets in Financial Instruments Regulation include:


1. Leverage limits on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying:

⦁ 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 and other reference values;
⦁ 2:1 for cryptocurrencies;
So the following products will be affected accordingly:

*Any combination of those currencies in Major FX is classified as ‘Major’. Any other pair will be classified as Minor.

So the following products will be affected accordingly:

30:1 Leverage
3.33% Margin
20:1 Leverage
5% Margin
10:1 Leverage
10% Margin
5:1 Leverage
20% Margin
2:1 Leverage
50% Margin
Major FX
Major indices
FTSE 100
US Oil
Any equity
CAC 40
UK Oil
Any product not listed
Bitcoin Cash
DAX 30
DOW 30
All other commodities
S&P 500
All other indices
All others
ASX 200


When? Product Trade Size Price Leverage Margin Required
Up to 31st July 2018
1 Lot
From 31st July 2018
1 Lot
Up to 31st July 2018
US 30
1 Lot
From 31st July 2018
US 30
1 Lot

2. A margin close out rule on a per account basis. This will standardise the percentage of margin (at 50% of minimum required margin) at which providers are required to close out one or more retail client’s open CFDs;
Hantec Markets shall close one or more of a retail investor’s open CFD positions on terms most favourable to the client in accordance with Articles 24 and 27 of MiFID II when the sum of funds in the CFD trading account and the unrealised net profits of all open CFDs connected to that account falls to less than half of the total initial margin protection for all those open CFDs.

You have $2000 in your account, and you open a Gold position that requires £1,000 margin. 50% of the initial margin requirement for the Gold position is £500. If your equity falls from your original £2000 to £500 or less, then your position/s will be closed automatically.

Negative balance protection on a per account basis. This will provide an overall guaranteed limit on retail client losses;
The purpose of a negative balance protection is to ensure that an investor’s maximum losses from trading CFDs, including all related costs, are limited to the total funds related to trading CFDs that are in the investor’s CFD trading account. This includes any funds yet to be paid into that account due to net profits from the closure of open CFDs connected to that account.

You should note that from 1st August 2018, under 1.1.3. of the Client Agreement, the main account and any sub-accounts, including accounts held in joint ownership constitute a single contractual agreement and are treated as one account for the purpose of realized client balances. This means that all account opening conditions, agreements and provisions between us with regards to the main account are equally valid and applicable to all accounts held by you individually and jointly, and any realized negative balances may be netted against other accounts held in your name. Any account unrealized balances, positions, or margin requirements will not be netted against each other unless otherwise agreed in writing by both parties.


4. A restriction on the incentives offered to trade CFDs;
The marketing, distribution or sale to retail clients of CFDs is restricted to circumstances where at least all of the following conditions are met:

  • The CFD provider requires the retail client to pay the initial margin protection;
  • The CFD provider provides the retail client with the margin close-out protection;
  • The CFD provider provides the retail client with the negative balance protection;
  • The CFD provider does not directly or indirectly provide the retail client with a payment, monetary or excluded non-monetary benefit in relation to the marketing, distribution or sale of a CFD, other than the realised profits on any CFD provided; and
  • The CFD provider does not send directly or indirectly a communication to or publish information accessible by a retail client relating to the marketing, distribution or sale of a CFD unless it includes the appropriate risk warning specified by and complying with the conditions in Annex II.

5. A standardised risk warning, including the percentage of losses on a CFD provider’s retail investor accounts.

  • The risk warning shall be in a layout ensuring its prominence, in a font size at least equal to the predominant font size and in the same language as that used in the communication or published information.
  • If the communication or published information is in a durable medium or a webpage, the risk warning shall be in the format specified in Section B.
  • If the communication or information is in a medium other than a durable medium or a webpage, the risk warning shall be in the format specified in Section C.
  • The risk warning shall include an up-to-date provider-specific loss percentage based on a calculation of the percentage of CFD trading accounts provided to retail clients by the CFD provider that lost money. The calculation shall be performed every three months and cover the 12-month period preceding the date on which it is performed (‘12-month calculation period’).

Important Information

These changes will take effect at the end of day on 31st July 2018.

Please ensure you have enough funds available in your account BEFORE 30th July 2018, when the margin requirement on ALL OPEN POSITIONS in your account/s will be increased. You can do this by adding additional funds to your accounts HERE and/or reducing the size of your open positions. Remember that margin used to open and maintain positions is not a fee and is returned to your account equity once a trade closes.

If you do not have sufficient equity in your account at the end of day on 30th July 2018, your positions may be closed.

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Risk Warning

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

66% of retail investor accounts lose money when trading CFDs with this provider.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please click here to view our Risk Disclosure.

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