Livesquawk citing the UK FCA
The ESMA is the European regulator. This notice comes from the FCA who are advising that the ESMA have launched their consultation paper today regarding the CFD market. Here’s some guff.
On 18 January 2018, the European Securities and Markets Authority (ESMA) issued a consultation paper (link is external) on applying potential product intervention measures to contracts for differences (CFDs) and binary options sold to retail clients.
ESMA is consulting on the possible use of its product intervention powers under Article 40 of the Markets in Financial Instruments Regulation (MiFIR) to address risks to investor protection arising from these products. In particular, ESMA is considering measures to:
- Prohibit the marketing, distribution and sale of binary options to retail clients.
- Restrict the marketing, distribution and sale to retail clients of CFDs, including rolling spot forex.
- Restrict or prohibit the marketing, distribution and sale to retail clients of CFDs on cryptocurrencies.
ESMA is seeking responses from investors, firms and other interested parties on the impact of the measures under consideration. ESMA’s call for evidence is open for consultation until 5 February 2018.
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
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I agree on the Binary job. I agree on the Cryptos, but give us a break FCA and ESMA. CFDs? You are having a laugh. Stick and be happy with your Financial Transaction Tax. Stay out of our business
Two hopes 😉
It really needs to be just the leverage and the hooks firms use to snag customers. I still say that brokers should provide education and maybe an exam for new clients to make sure they understand what they are doing. Will never happen though.