Update: ESMA introduces CFD restrictions for sales to retail investors

Backed by the FCA

clock • 2 min read

The European Securities and Markets Authority (ESMA) has introduced a number of measures for the provision of contracts for differences (CFDs), including a ban on the sale or marketing of binary options to retail investors.

Following a consultation as announced in January, the pan-European regulator has introduced leverage limits and negative balance protection on CFDs, while also banning the marketing, distribution or sale of binary options to retail clients and restricted sales to retail clients of CFDs, including rolling spot forex and financial spread bets. FCA delays decision on CFD rules CFDs are contracts between an investor and an investment bank or a spread-betting firm, which see the parties exchange the difference between the opening and closing prices of a specified financial instrument at th...

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