Share this article
BTC
$88,176.00
+
4.60%ETH
$1,625.48
+
3.36%USDT
$1.0002
+
0.03%XRP
$2.1223
+
3.63%BNB
$603.88
+
2.69%SOL
$138.54
+
1.95%USDC
$0.9999
+
0.01%DOGE
$0.1609
+
5.27%TRX
$0.2438
-
0.39%ADA
$0.6398
+
4.63%LINK
$13.40
+
2.30%AVAX
$20.63
+
6.52%LEO
$9.1163
-
2.17%XLM
$0.2600
+
7.85%TON
$2.9898
+
0.31%SHIB
$0.0₄1257
+
2.10%SUI
$2.2484
+
7.69%HBAR
$0.1713
+
4.96%BCH
$344.62
+
3.83%HYPE
$18.18
+
4.90%Sign Up
- Back to menuPrices
- Back to menuResearch
- Back to menuConsensus
- Back to menu
- Back to menu
- Back to menu
- Back to menuWebinars & Events
UK Broker IG Group Stops Retail Crypto Derivatives Trades After FCA Ban
The firm said it has now reached its internal product limit for exposure to cryptocurrencies after an FCA ban on crypto derivatives in January.
London-listed forex and derivatives trading platform IG Group (IGG) is asking retail clients to close their open spread bet and contract for difference (CFD) positions on cryptocurrencies.
STORY CONTINUES BELOW
According to a post from an administrator on IG's forum Sunday, the firm has now reached its internal product limit for exposure to cryptocurrencies, and as a result, will be removing them from its offerings. Until then, IG will be increasing its margin requirements, the admin said.
The relevant positions on cryptocurrencies must be closed by 15:00 local time on March 24. After that, IG will close any positions still open based on its prevailing bid/ask prices, they said.
The move comes after the U.K.'s Financial Conduct Authority (FCA) ban on the sale of derivatives and exchange-traded notes came into effect on Jan. 6, after the financial regulator said it considers the products to be too high risk for retail consumers.
Read more: Crypto Derivatives: A Corner of the Market or the Market Itself?
Since the ban was implemented, IG has restricted U.K. retail clients from increasing their exposure to cryptocurrencies, the admin said.
The FCA's restriction has been criticized by some in the crypto industry, who argued that U.K. retail investors should have access to the same opportunities as institutions and that the ban would drive traders to unregulated exchanges.
Tanzeel Akhtar
Tanzeel Akhtar has contributed to The Wall Street Journal, BBC, Bloomberg, CNBC, Forbes Africa, Financial Times, The Street, Citywire, Investing.com, Euromoney, Yahoo! Finance, Benzinga, Kitco News, African Business Magazine, Hedge Week, Campden Family Office, Modern Investor, Spear's Wealth Management Magazine, Global Investor, ETF.com, ETF Stream, CIO UK, Funds Global Asia, Portfolio Institutional, Interactive Investor, Bitcoin Magazine, CryptoNews.com, Bitcoin.com, The Local, The Next Web, Mining Journal, Money Marketing, Marketing Week and more. Tanzeel trained as a foreign correspondent at the University of Helsinki, Finland and newspaper journalist at the University of Central Lancashire, UK. She holds a BA (Honours) in English Literature from the Manchester Metropolitan University, UK and completed a semester abroad as an ERASMUS student at the National and Kapodistrian University of Athens, Greece. She is NCTJ Qualified - Media Law, Public Administration and passed the Shorthand 100WPM with distinction. She does not currently hold value in any digital currencies or projects.
