CME Emergency Actions - due to Brexit On June 22, 2016, the Global Command Center (“GCC”) took emergency action by temporarily modifying the special price fluctuation limits applicable to CME FX futures and CME and CBOT Interest Rate futures as a precautionary measure to ensure fair and orderly trading in these products based on the strong likelihood of increased price volatility expected to result from the “Brexit” vote in the United Kingdom on June 23, 2016. This is the CME Price Limit Guide - Trading Halted Levels.- where trading is halted. Normal Trading Halt Limts for FX - Currencies: Level 1: 400 points, Level 2: 800 Points, Level 3: 1'200 points, Level 4: 1'600 points. The New Temporary Halt Trading Limts for FX - Currencies will be double. Level 1: 800 points, Level 2: 1'600 Points, Level 3: 2'400 points, Level 4: 3'200 points. Read Full CME Notice >> --------------------------------------------------------------------------- Here is the CME Price Limits for Equity Index Markets - such as ES, NQ, YM, EMD - Read Here >> If you need any assistance or have any questions, please contact our 24 hour help desk:http://www.ampfutures.com/contact.html There is a risk of loss in trading futures, forex and options. Futures, forex and options trading are not appropriate for all investors.
AMP Phase 1 - Post Brexit Vote Results - DayTrade Margins Roll Back https://news.ampfutures.com/phase-1-post-brexit-vote-results-daytrade-margins-roll-back
The above link states: " Level II - 100% of Exchange Maintenance Margin Requirements for ALL Contracts - ALL Exchanges in these Sectors: Currencies – example: 1 contract of British Pound is $2,550.00 Metals – example: 1 contract of Gold is $4,500.00 Financials – example: 1 contract of 30yr Bond is $3,650.00 Grains – example: 1 contract of Soybeans is $2,600.00 Softs – example: 1 contract of Coffee is $2,850.00 Meats – example: 1 contract of Feeder Cattle is $3,375.00 Going into the weekend, any open positions as of Friday’s Market Close, we will require to have 2 times or 200% of the Exchange Maintenance Margin Requirement. " Are you doubling the exchange's margins as of today's close for all instruments, including, for example, ES, or are they doubled only for those contracts listed above?
yes, all instruments. "The CME Exchanges determined that there is a strong likelihood that the “Brexit” vote will continue to result in increased price volatility" So with the market being closed, we need to make sure our customers are properly capitalized to withstand any events that could cause gap opens for next weeks trading session. CME sent out notice they are also extending the Special Price Fluctuation Limits. SER-7687R - EXTENSION OF: Temporary Amendments to CME and CBOT Special Price Fluctuation Limits for CME FX and CME and CBOT IR Futures Products re Brexit Vote in the UK FX & IR Advisory (This SER supersedes SER 7687 dated June 22, 2016 and extends the temporary amendments from the close of trading on June 24, 2016 to the close of trading on June 27, 2016. No other changes are being made to the original SER.) Pursuant to Chicago Mercantile Exchange Inc. (“CME”) and The Board of Trade of the City of Chicago, Inc. (“CBOT”) (collectively, the “Exchanges”) Rule 579.A. (“Global Command Center – GCC Authority”), the CME Group Global Command Center (“GCC”) will take emergency action in connection with the “Brexit” vote in the United Kingdom held on June 23, 2016. The Exchanges determined that there is a strong likelihood that the “Brexit” vote will continue to result in increased price volatility in CME FX and CME and CBOT Interest Rate futures products. The emergency action is being taken as a precautionary measure and is intended to ensure fair and orderly trading in all these products which are subject to CME/CBOT Rule 589. (“Special Price Fluctuation Limits”).
Phase 2 - Post Brexit Vote Results - DayTrade Margins Roll Back to Standard DayTrade Margins, except Currencies. https://news.ampfutures.com/phase-2-post-brexit-vote-results-daytrade-margins-roll-back
Look, AMP, a three or four percent decline in ES was not a justification for a panic increase in ES margin. Your doubling of your ES margin requirement on Friday was completely unwarranted, totally absurd and outside of what other firms were charging. For example: Advantage Futures charged exchange minimum margins for ES (although they did raise their margins for some other products). Interactive Brokers did not raise their margin requirements for ES at all. Etc. But AMP DOUBLED the exchange's margin requirements for ES. That's fine, but AMP can no longer advertise that "maintenance margin is set by the exchange." Let me educate little AMP: If the news was already out, and the markets already had beaucoup time to react, and that reaction was mild, and the market's decline was orderly, then there was no need to adjust the margin requirements. And keep in mind that the exchange already routinely adjusts margin requirements for ES whenever warranted; and it was not warranted. But AMP charged TWICE AS MUCH maintenance margin for ES as Interactive Brokers, Advantage Futures and others on Friday. So let me ask: If AMP cannot come close to competing on price with other brokers, how do they expect to survive?
From our understanding, AMP's Standard DayTrade Margins are much lower than the firms you mention, so doubling AMP's standard day trade margins would bring us up to where they are normally....so now we are back to normal $400 day trade margins for the ES. Happy Trading!