In an interview with e-Forex Magazine PLUGIT’s CEO, Jalal Faour, spoke about how his team have been working to help brokers meet the requirements of new industry-wide legislation set out by the European Securities and Markets Authorities (ESMA).
In efforts to comply with ESMA’s product intervention measures on CFDs, Plugit Apps have developed a plugin targeted for MetaTrader 4 users called ‘Dynamic Leverage’. What is this designed to do and how does it work?
The dynamic leverage solution enables brokers to automatically adjust clients’ leverage based on a predefined tiered leverage structure. The higher the exposure the lower the leverage. Exposure could be defined on a per instrument basis, lot volume or notional volume, or on a per client account basis, NOP. Additionally, the product has been made ESMA compliant and is able to distinguish trades that were opened before the new ESMA regulations came out.
What key features are available with this add-on?
The application is very user- friendly and easily configurable from the web portal. It is also fully compatible with MT4 and MT5. Brokers can define an unlimited number of profiles on a per group basis and down to individual trading account basis where you can set up different configurations on a per symbol basis for each profile. We have been continuously upgrading the solution through the release of different versions to address different requirements and scenarios.
How does Dynamic Leverage help brokers to minimize risk?
This solution helps brokers minimize their risk due to unexpected large volumes as well as minimize large gaps between the broker’s and Liquidity Provider’s margin utilization. It allows brokers to restrain clients with lower equities to have large exposures
Last year was a significant one for the growth of the company. In what ways have you been working to expand your global presence this year?
The past year has been a tremendous one in terms of growth and expansion. We have set foot in Asia by opening our Shanghai office to serve mainland China and the region. We are planning to open another office in Malaysia by early 2019, to target the growing South East Asian market.