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Financial Spreads Increases Capacity by 500% to Cope with EU Referendum Trading Volumes


Financial Spreads has increased server capacity in expectation of heavy trading volumes around the EU referendum.

London, United Kingdom, June 23, 2016 --(PR.com)-- Financial Spreads, the UK spread trading and CFD company, is expecting heavy trading volumes once the results of the EU referendum start to be announced on Friday 24 June.

Planning for the increased trading levels include:

- Increasing server capacity. On a normal business day 95-99% of trades to go through the FinancialSpreads.com website and mobile apps. In order to cope with increased trading volumes the company has increased capacity of the backend servers by 500%

- Writing to clients to warn them of the potentially extreme market volatility

- Having the company's entire Dealing Support team in the office overnight on Thursday 23 June to help take trades over the phone

- Raising margin levels, i.e. the funds that clients need to deposit before they can trade. Clients now need to deposit 8-10 times more than usual.

Other elements of the normal Financial Spreads service will continue as normal, these include:

- Running more than 20 forex markets overnight on Thursday including GBP/USD, EUR/GBP and EUR/USD

- Trading will close for the weekend at 10pm, Friday 24 June

- Trading will resume at 10pm, Sunday 26 June.

According to Adam Jepsen, the founder of Financial Spreads, "We have increased margins so that clients retain higher capital buffers on their accounts. Hopefully this means that fewer trades will be closed because a volatile market has temporarily moved against a client's positions.

"Likewise, we hope there will be fewer margin calls for clients, i.e. fewer requests for clients to deposit more money to cover their trades during the volatile conditions."

Trading capacity should not be a problem according to Adam Jepsen, "Normally, the busiest trading day of the month is the Friday that the US Nonfarm Payrolls are released. Even then, we rarely hit 50% of our trading capacity.

"For the referendum we have increased our capacity by 500%. In short, we could easily handle trading volumes that are eight times higher than the busiest day of the month and still have 20% spare capacity.

"Having said that, an eight fold increase is unlikely. Margin (deposit) requirements for clients are 8-10 times higher than normal and that could dampen trading volumes."

Because the voting for the EU referendum closes at 10pm, Thursday 23 June, Adam Jepsen thinks that it may not be until 1-2am on Friday 24 June when volumes see a large increase.

"At the moment trading volumes are light, particularly with sterling based forex markets. I would like to think this is because clients are aware of the potential risks and/or they have heeded our warnings.

"The voting ends at 10pm on Thursday and so it may not be until 1-2am on Friday when there is a clearer indication of the result. At the point, volumes could start to spike".

Spread trading and CFD trading are leveraged products which carry a high level of risk to your capital. You can lose more than your initial deposit so you should ensure spread trading and CFD trading meet your investment objectives and, if necessary, seek independent advice.

About Financial Spreads

Investors can use the FinancialSpreads.com website and mobile apps to trade more than 1,000 financial markets including the key US, UK and European stock markets.

Clients can also access a range of forex and commodities markets 24 hours a day from Sunday evening through to Friday evening.

Financial Spreads is a trading name of Clear Investor Ltd. which is an appointed representative of FINSA Europe Ltd., company no: 07073413. FINSA Europe Ltd. is authorised and regulated by the Financial Conduct Authority, registered number 525164.

Registered Address: Office 701, Tower Bridge Business Centre, 46-48 East Smithfield, London E1W 1AW, UK.
Contact Information
Financial Spreads
Adam Jepsen
+44 (0)20 7234 9124
Contact
www.financialspreads.com
Tower Bridge Business Centre
46-48 East Smithfield
London
E1W 1AW
UK

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