Dear Clients,

As most of you know by now, the Brexit vote has finished and although the vote was close, the “Leave” camp prevailed. So the UK will officially be leaving the European Union.

This has led to some extraordinary and unprecedented moves in the financial markets.

The pound is at its cheapest level in over 30 years! High quality British companies are now trading for remarkable discounts.

And as we had warned; spreads went wild, and volatility surged! We saw some insane ranges – notably… 2700 pips on the GBPJPY, and almost 2000 pips on GBPUSD, and at least 1000+ pips or more on essentially all GBP cross pairs.

Congratulations to the vast majority of our clients who heeded the warnings of countless analysts as well as ourselves, and ensured that their open positions had sufficient margin or were closed out altogether going in to the vote.

The volatility certainly creates plenty of opportunities and no doubt there were fortunes made and lost in the aftermath, but we believe that the “safety-first” traders also deserve high recognition for their discipline and professionalism.

What’s Next?

Britain has been part of the EU for four decades, and now that’s coming to an end. Today, many investors across all markets are panic-selling since the next steps in the process are not entirely clear.

Markets don’t like uncertainty so we still expect highly volatile conditions in the short-term. Our intention is to keep the increased margin requirement in effect until the end of the trading day, Monday June 27th

We will reassess the margin based on the conditions at that time and will inform you accordingly once they are set back to the default levels.

Sincerely,

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