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End of an Era for Japanese FX Leverage?

Posted on July 02, 2009

Japan's Financial Service Agency will reportedly will limit the amount leveraging available to retail foreign exchange participants, who according to estimates account for around a quarter of the daily turnover in Tokyo, which according the the BIS survey averaged about $302 bln a day.The FSA plans call for capping leverage starting next year at 50-times and then cutting it to 25-times at the start of 2011. Currently, reports suggest that leverage is possible up to 400-times currently at some firms. Japan had de-regulated retail foreign exchange margin (leverage) trading nearly ten years and i...

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foreign exchange , trading