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ASIC follows FCA in limiting leveraged trading

ASIC follows FCA in limiting leveraged trading – 28th October

The Australian financial services regulator ASIC have announced that they will now be following the FCA in limiting certain aspects of CFD trading, which will impact its regulated brokers.

The move comes as the regulator hopes to protect retail traders, who they believe may be “ill equipped” to trade on higher levels of leverage.

Many now expect traders which are affected to seek new brokers regulated in other jurisdictions like Tradeview Markets, who will still be able to offer what had been considered industry standard levels of leverage to retail clients.

In confirming the changes, which will commence March of 2021, ASIC released its new leverage levels.

Max Leverage for retail traders:

  • 30:1 for CFDs referencing an exchange rate for a major currency pair
  • 20:1 for CFDs referencing an exchange rate for a minor currency pair, gold or a major stock market index
  • 10:1 for CFDs referencing a commodity (other than gold) or a minor stock market index
  • 2:1 for CFDs referencing crypto assets
  • 5:1 for CFDs referencing shares or other assets

Stocks sink as COVID-19 fears grow

Stock markets across the globe fell on Wednesday as fears of a second wave of coronavirus cases dented investor confidence.

In the United States the number of new daily cases has surpassed 80,000 in recent days, and as such, sent the one-week average to a new high of close to 69,000, which is substantially above the numbers seen during the peak of the first wave.

As a result of the numbers and growing concerns, heading into the close the Dow Jones had fallen close to 3.4%, the S&P 500 lost around 2.95%, whilst the NASDAQ declined by 3.7% also. These drops came despite news that exports of goods in the U.S. rose by 2.7% to $122 billion.

ECB expected to keep rates unchanged

Recent selloffs in European stocks have pushed markets to their lowest levels since the height of the COVID-19 outbreak.

This comes as a rise in coronavirus infections have led to many European nations pondering new national lockdowns. Germany has followed France in moving to shut down, with Angela Merkel confirming a four-week lockdown will commence from Monday.

The Dax in Germany dropped 4.17% to its lowest level since the end of May. The CAC 40 in France dropped by 3.37%, whilst the FTSE 100 in London fell 2.55%.

Quote of the day – “Sheer will, and determination is no substitute for something that actually works.”

Jason Klatt – #TradeWithCoach USA Political Update – for Oct. 28
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Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.