IG relaxed on possible Japanese rule changes

26th May 2009 07:05

Spread betting firm IG Group said it expects the Financial Services Agency of Japan to clarify its intentions regarding limiting the amount of gearing that can be offered to retail foreign exchange speculators in Japan.In response to recent speculation in the Japanese press, IG said it has made representations, in conjunction with other retail foreign exchange (forex) providers, to the Financial Services Agency of Japan (FSAJ) about the FSAJ’s plans.IG expects that the FSAJ will shortly either start a period of consultation with the retail forex industry in relation to proposed regulatory changes, or will publish draft rules and then enter into a period of consultation.IG’s view is that the rule changes that are being contemplated would probably only affect a minority of the group’s Japanese clients, measured both by number of clients and by trading volume. The financial impact is therefore likely to be limited, especially as IG’s Japanese subsidiary already offers standard gearing levels that are much lower than some competitors.