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FCA makes ESMA’s CFD restrictions permanent, but allows higher leverage on bonds

#1
UK’s Financial Conduct Authority (FCA) confirmed its decision to permanently restrict the sale of CFDs and CFD-like products on a national level earlier this week. While most of these restrictive rules mirror ESMA’s product intervention measures, there are some slight alterations, such as the higher leverage allowed for the sale of government bonds.

FCA’s rules are aimed at guaranteeing consumer protection and will come into effect from the 1st of August for CFDs and on the 1st of September for CFD-like options.

More specifically, these measures include a requirement for all brokerages to provide negative balance protection to all account holders, to close out a customer’s position when their funds fall to 50% of the margin needed, to place a standardized risk warning on their websites, to stop offering monetary and non-monetary inducements to encourage trading (such as bonuses), as well as to offer leverage of 1:2 to 1:30, depending on the asset class.


Re: FCA makes ESMA’s CFD restrictions permanent, but allows higher leverage on bonds

#2
mlawson71 wrote:
Fri Jul 05, 2019 1:13 am
UK’s Financial Conduct Authority (FCA) confirmed its decision to permanently restrict the sale of CFDs and CFD-like products on a national level earlier this week. While most of these restrictive rules mirror ESMA’s product intervention measures, there are some slight alterations, such as the higher leverage allowed for the sale of government bonds.

FCA’s rules are aimed at guaranteeing consumer protection and will come into effect from the 1st of August for CFDs and on the 1st of September for CFD-like options.

More specifically, these measures include a requirement for all brokerages to provide negative balance protection to all account holders, to close out a customer’s position when their funds fall to 50% of the margin needed, to place a standardized risk warning on their websites, to stop offering monetary and non-monetary inducements to encourage trading (such as bonuses), as well as to offer leverage of 1:2 to 1:30, depending on the asset class.
That's why I closed my accounts in Europe already last year. Same in the US with their nonsense of FIFO, also "to protect the retailers". How ridiculous to claim consumer protection while refusing to address the actual problem. The banks can gamble with my money (savings) on derevatives or hot air products and when they get broke the tax payers have to bail them out. On the other hand they put restrictions on what I can or cannot do with MY own money.



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