Leverate had 277% spike in trading activity following Brexit, advises brokers to keep risk management in mind

Whilst many brokers using Leverate’s solution experienced an increase in volume, risk management is still a very important factor.

Leverate restructure

The political landmark that took place last week has now passed, and the result of the British population’s referendum on the nation’s membership of the European Union has now become public knowledge, with the United Kingdom set to leave the European Union.

In the advent of the referendum, many brokerages prepared for potentially high market volatility by taking prudent measures including raising margins on GBP pairs and lowering leverage.

Preparation in order to create a smooth trading environment and ensure that traders are not exposed to negative balances is, however, not restricted solely to brokerages themselves, and extends in some cases to technology providers which deliver and manage end to end solutions for FX brokerages.

One particular example is Leverate, which provides liquidity and risk management alongside its technology solutions, and as an integral component of its provision to brokerages.

The company has confirmed that it managed the period immediately following the Brexit vote with no effect on itself or its customers, however the firm continues to advise its customers to maintain risk management policies as there is potentially more volatility likely to materialize over the next few days.

Leverate believes that the volatility that ensued following the revealing of the result of the referendum created a period of high trading activity, with the firm recording some 277% incease in volume during the few hours following the announcement of a Brexit.

Read this next

Institutional FX

Verto launches EM FX marketplace: NGN, ZAR, XAF, XOF, KES, GHS, UGX

“We’ve seen significant pent-up demand looking for counterparties, which is one of the reasons we’re launching this product. We built Verto Marketplace to directly address these systemic issues, offering a platform that provides the control, transparency, and cost-efficiency that traders, brokers, and corporate treasurers need.”

Payments

BVNK launches Swift payments to move between fiat and stablecoins

“Adding USD and EUR via Swift means that our customers can really take full advantage of stablecoins to speed up their money movement, wherever they are based – and they can easily get back into fiat currencies if and where they need to.”

Market News

Base metals could soon take off from the base again

Dive into our full analysis to understand the potential resurgence of base metals and what it could mean for your investment strategy.

Digital Assets

Global clamp down on crypto tax evasion to go live in 2027

“As jurisdictions that play host to active crypto markets, we therefore intend to work towards swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027.”

Digital Assets

Ripple and Archax team up for tokenization with XRPL

“There is clear real-world utility in use cases like RWA tokenization for the operational efficiency, access to liquid markets and transparency inherent to crypto, and Archax has already tokenized assets such as equities, debt instruments and money market funds. Financial institutions are now understanding this and we are excited to play our part in helping them to embrace the technology by bringing their assets onto the XRPL.”

Interviews

Acuity Trading at iFX EXPO LATAM: Andrew Lane on the rise of AI and prop trading

At iFX EXPO LATAM 2024, Acuity Trading’s Andrew Lane discussed the successful rollout of their Research Terminal, the impact of AI on the trading industry, competition from AI-powered solutions, emerging market trends in Latin America, and the rise of prop trading, while addressing regulatory challenges and innovations.

blockdag

Top Crypto Highlights for Q2 2024: BlockDAG’s Astonishing 1120% Growth Compared to Solana’s Surge and Toncoin’s Market Triumph

Explore the latest highlights in cryptocurrency: Solana’s recovery, Toncoin’s record levels, and the rise of BlockDAG’s innovative technology.

Digital Assets

Ripple seeks $10 million penalty citing Terraform fine in SEC case

Ripple Labs wants to reduce the financial penalties proposed by the U.S. Securities and Exchange Commission (SEC) by leveraging recent fines imposed on Terraform Labs.

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.

<