IG Securities announced that it is adjusting margin rates in response to the upcoming Mexican presidential election scheduled for Sunday, June 2, 2024. The company expects increased market volatility due to the election and has taken measures to mitigate the impact.

With the Mexican presidential election expected to bring major news over the weekend, IG Securities anticipates increased volatility in stocks related to the Mexican peso. This expected volatility is likely to increase the risk of price fluctuations in currency pairs such as MXN/JPY, USD/MXN, EUR/MXN and GBP/MXN.

To address these potential risks, IG Securities will raise the maintenance margin rate for new positions in stocks linked to the Mexican peso to 5% starting at 4:00 p.m. on Friday, May 31. This precautionary measure aims to protect traders from sudden market movements.

The company clarified that there will be no changes in margin rates on existing positions. The increased margin rate is a temporary measure and will be reviewed and potentially adjusted after the election.

IG Securities has expressed its appreciation to clients for their understanding and cooperation during this period. The company emphasizes that these changes are necessary to maintain market stability and safeguard trading activity. Clients with questions or concerns are encouraged to contact IG.

The temporary adjustment of margin rates underscores IG Securities' proactive approach to managing market risks associated with major political events. As election results unfold, the company will continue to monitor market conditions and adjust policies as necessary to protect traders' interests.