Forex brokerage IG Group said on Wednesday it will temporarily increase margin rates on indices, bonds and interest rates prior to Italy’s referendum which will decide whether the country would make amendments to its constitution. New margins will come into effect rom 3pm (UK time) on 2 December, 2016, and will affect working orders, options, and positions opened via MetaTrader 4 (MT4) trading platform.
However, positions opened with guaranteed stops will not be affected by the margin change.
Margin rates will increase for the following markets:
The Italian referendum will take place on 4 December, 2016. It will decide whether the country’s constitutions would be amended and, depending on the outcome, might mean the resignation of the Prime Minister. It is also seen as a significant event that would show the future of the EU, of which Italy is part. Exit poll results will be released at the same day. The poll data and the vote itself are expected to affect global markets and cause increased volatility.
The broker urges traders to be cautious, monitor their positions daily and ensure they have sufficient funds in their accounts to meet margin requirements and prevent early closure.
IG Group operates worldwide with offices in 15 countries. It is regulated by the UK’s Financial Conduct Authority (FCA), but its subsidiaries are also regulated by the relevant authorities in the countries where they operate. It is also a licensed bookmaker by the UK’s Gambling Commission.