ESMA has agreed measures in respect of Contracts for Differences (CFDs) and Binary Options to European Union Retail Investors.
- Restrictions on marketing, distribution or sale of CFDs to Retail Investors, including a margin close out rule on a per account basis, negative balance protection on a per account basis, imposing leverage limits on opening positions; and standardised Firm specific risk warnings
- Prohibition on marketing, distribution or sale of Binary Options to Retail Investors
In line with MiFIR, ESMA can only introduce temporary intervention measures on a three-monthly basis. Before the end of this period, ESMA will consider whether there is a need to extend the intervention measures for a further three months.
The FCA has also issued a statement supporting these measures. The FCA expects to consult on whether to apply these measures on a permanent basis to firms offering CFDs and binary options to retail clients.
To read more, please follow these links:
Contact us here
Please Note: This publication is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying the information contained in this publication to specific issues or transactions.
Source and credit: Compliancy Services
Latest posts by Melissa Lewis (see all)
- ESMA on submission of authorisation applications - 20th July 2018
- FCA Releases Near Final Rules on SMCR Extension to all FSMA authorised firm - 16th July 2018
- Further Amendments to JMLSG Guidance - 12th July 2018