Major brokers support ESMA's restrictions on leverage, binary options, but also voice concern
Posted: Sat Dec 23, 2017 1:20 am
Some of the largest regulated forex brokerages in the world – FXCM, IG Group, Gain Capital, CMC Markets, Plus500 - have expressed their general support for the intentions of the European Securities and Markets Authority (ESMA) to impose new restrictions on the industry in order to better protect retail clients, but also voiced their concerns.
Last Friday ESMA issued an interim update, in which it outlines its intentions to cap the leverage on forex and CFDs to anything between 1:5 and 1:30, depending on the volatility of the underlying product. Additionally, ESMA is planning a blanket ban on the distribution and marketing of binary options products across the EU. There will also be new rules about margin, negative balance protection, trading bonuses and risk warnings.
Last Friday ESMA issued an interim update, in which it outlines its intentions to cap the leverage on forex and CFDs to anything between 1:5 and 1:30, depending on the volatility of the underlying product. Additionally, ESMA is planning a blanket ban on the distribution and marketing of binary options products across the EU. There will also be new rules about margin, negative balance protection, trading bonuses and risk warnings.