.




Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

#36
The European Securities Markets Authority (ESMA) announced it is renewing the restrictions on CFDs trading for another three months as of February 1, 2019. The pan-European regulator also implied that it will monitor closely forex brokerages, as it has identified certain malpractices.

Ever since August last year, when these measures have been officially applied, CFD providers have been searching for ways to get around them, and more specifically the leverage cap to 1:30 for retail clients. Some of them are advertising to such clients the possibility of becoming professional clients upon request and thus becoming eligible to use higher leverage ratios. Another tactic forex broker use is moving their customers’ accounts to an intra-group third-country entity.

ESMA stated it is aware of those malpractices and will monitor closely CFD providers. The regulator also implied it is possible to introduce “other Union measures” it deems appropriate.

Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

#37
mlawson71 wrote:
Tue Feb 05, 2019 2:28 am
The European Securities Markets Authority (ESMA) announced it is renewing the restrictions on CFDs trading for another three months as of February 1, 2019. The pan-European regulator also implied that it will monitor closely forex brokerages, as it has identified certain malpractices.

Ever since August last year, when these measures have been officially applied, CFD providers have been searching for ways to get around them, and more specifically the leverage cap to 1:30 for retail clients. Some of them are advertising to such clients the possibility of becoming professional clients upon request and thus becoming eligible to use higher leverage ratios. Another tactic forex broker use is moving their customers’ accounts to an intra-group third-country entity.

ESMA stated it is aware of those malpractices and will monitor closely CFD providers. The regulator also implied it is possible to introduce “other Union measures” it deems appropriate.
Shit!
Download over 500+ Forex & Trading books from Forex-Station's (member's only) Trader's Library.

Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

#39
Denmark announced that it will also ban the sale of binary options to retail customers, pointing out that such instruments are too complex and risky for inexperienced traders.

The step follows similar moves by other European countries like the UK and Austria.

According to the Danish Financial Supervisory Authority (FSA) many retail investors in Europe lose money with binary options which currently are offered online mainly by offshore companies without a license.



Who is online

Users browsing this forum: CommonCrawl [Bot] and 0 guests