ESMA Regulatory changes

All the information you need to understand how ESMA impacts your trading with City Index.

In accordance with the new ESMA investor protection measures for Retail clients (effective 1st August 2018), there will be changes to your account from 29th July. These changes are detailed below for both Advantage Trader and MT4 clients.

You can find background information on the ESMA changes here. These changes will not apply to Professional clients.

Advantage Trader clients

If you trade on Advantage Web, AT Pro or our mobile apps, you’ll be able to login to your Primary account with your current ID and password and trade as normal on our new, adjusted margin rates. This account has your full trading history and account settings.

If you have any open positions at 10pm BST on 27th July, we will also create a Secondary account which holds all your funds and existing positions opened under current (pre-ESMA) margin rates. You will not be able to open new positions from this account but can fund, withdraw and transfer funds to your Primary account.

at diagram 2

Changes at a glance

If you have open positions at 10pm BST market close on 27th July

An additional account linked to your existing trading account will be created, your "Secondary Account":

  • This linked account will be used to maintain your open positions at the current margin levels
  • Your open positions and full balance will be available in this account, which will be set to 'close only'
  • You cannot open new positions form this account
  • You can fund, transfer and withdraw for this account

Your existing trading account remains your "Primary Account":

  • Some account settings will be changed to implement the new ESMA regulations including reduced leverage by asset class and negative balance protection
  • Your watchlists, charts, funding options and other account settings will not be affected
  • Your balance and open positions at market close on 27th July will only be visible in your "Secondary Account"
  • All entry orders in this account will be permanently cancelled
  • To continue trading you need to fund and open new positions from your "Primary account"

Your Primary and Secondary accounts will be linked.

  • You log in to both accounts using the same credentials you use today
  • You can transfer funds from your new Secondary Account to your Primary Account
  • Toggle between accounts in all platforms
If you do NOT have any open positions at 10pm BST market close on 27th July

Your existing account will remain your "Primary account" and an additional account will not be created.

  • Some account settings will be changed to implement the new ESMA regulations including reduced leverage by asset class and negative balance protection.
  • Your watchlists, charts, funding options and other account settings will not be affected

50% Margin Close Out Rule

A 50% margin close out rule will be applied to all retail accounts on an ‘account level’ basis from 29th July. This means that if the combined value of trades in any one of your accounts falls by 50% or more, we may close out all or any of the open positions in that account.

It is important to ensure you have sufficient margin in both your primary and secondary accounts to maintain your open positions.

We will continue to send you Margin Level alert notifications for your courtesy but these should not be relied upon due to possible periods of high market volatility.


Negative Balance Protection

In addition to the margin close out rule above, all retail clients will also receive negative balance protection. This new setting prevents your balance from falling below zero and will be automatically active on your account from 29th July.

Detailed FAQs


FAQs

Advantage Web, AT Pro and Mobile apps

Account management

Learn more about managing your account following introduction of the new ESMA regulations

Learn More

Funding

Everything you need to know about funding your account, transferring funds and withdrawals

Learn More

Orders & positions

Find out what happens to your existing positions and margin rates once ESMA regulations take effect

Learn More

MT4 clients

If you do NOT have open positions at 10pm BST on 27th July, you will be able to continue trading on your existing account, with adjusted margin rates and settings.

If you DO have open positions at 10pm BST on 27th July, you will be able to login to your existing account, which will contain all of your available funds and current positions. You will not be able to open new positions in this account. Therefore, we have created a new account (with new ID and password) where you can trade with the new, adjusted margin rates.


mt4 diagram 2

MT4 FAQs

Account management

Learn more about managing your account following introduction of the new ESMA regulations

Learn More

Funding

Everything you need to know about funding your account, transferring funds and withdrawals

Learn More

Orders & positions

Find out what happens to your existing positions and margin rates once ESMA regulations take effect

Learn More
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