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Australian securities and investments commission proposes cfd restrictions and binary options ban

**The aforesaid regulator has recently issued a consultation paper which sets out planned measures with regards to restrictions on over-the-counter (OTC) binary options and contracts-for-differences (cfds).** The Binary options enable traders to bet on the price of an asset or a particular currency or commodity over a short time-frame. This option allows traders to actually buy or sell the und...

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CySEC introduces restrictions for cfd offering to retail investors

**The Cyprus Securities and Exchange Commission (CySEC) has announced new national measures that restrict the distribution, sale, and marketing of contracts for difference (cfd).** New CySEC measures are largely aligned with the ESMA (European Securities and Markets Authority) restrictions for offering cfds to retail clients. ESMA, for its part, published an opinion concluding that measures adopt...

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Turbo Certificates vs. cfds

Although cfds and Turbo Certificates have common characteristics, ESMA’s restrictions do not extend to such investment product as Turbo Certificate. So, let’s find out why? What is the difference between Turbo Certificates and cfds? Both instruments trade with leverage and do not have expirations. However, Turbos offer a guaranteed return as these are structured products whose upside retur...

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ASIC implements new rules for issuers of cfds

**The Australian financial regulator has implemented new regulation for wholesale clients and excluded the ‘price and value test’ for issuers of cfds.** The test is applied by cfd issuers when classifying customers as wholesale clients. Specifically, the ‘price and value’ test is set in s 761G(7)(a) of the Corporations Act 2001 (Cth) and allows to classify clients as wholesale where th...

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New Legal Framework for Forex and cfd Brokers in Bahamas

**Bahamas is one of the most popular destinations for foreign exchange and cfd brokers**, with the nation’s regulator - the Securities Commission (SC) of The Bahamas, is about to introduce a set of new regulations which stipulates leverage restrictions. Proposed regulation has been highlighted by the Government of The Bahamas on the 27th of May 2020. The SC will be implementing leverage rest...

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ASIC’s strengthens consumer protections by reducing cfd leverage

Recently the Australian Securities and Investments Commission (ASIC) announced a product intervention order which included restrictions on selling contracts for difference (cfds) to retail clients, saying it was still concerned about investor protection. This came after the Australian parliament granted ASIC product intervention powers, similar to those exercised by the European Securities and Ma...

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Restrictions, imposed by European Securities and Markets Authority (ESMA) on the marketing, distribution or sale of cfds and binary options to retail clients, will stay permanent

By European Securities and Markets Authority (ESMA) [decision](https://www.esma.europa.eu/press-news/esma-news/esma-ceases-renewal-product-intervention-measures-relating-contracts){._blank} as of 31 July 2019, continuous temporary restrictions, imposed on the marketing, distribution or sale of contracts for differences to retail clients, affecting the market from 22 May 2018, will apply as perman...

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How Brokers in China Feel After the Website Blocks

...ices as well as FX and brokerage services had a place on the market. This place was not the dominant one, but at the same time, audience that used financial services from across the border was stable and solvent. Latest **changes to the Forex and cfds market** are most likely due to changes in financial regulations of the China mainland. After the People’s Bank of China initiated creation of ...

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CySEC proposes three levels of leverage for retail clients

...ceive leverage of 20:1 on traditional currencies. In case of digital assets trading, no leverage will be available to these clients. In addition to the above, the regulator suggested a prohibition of marketing, distribution, and sale of leveraged cfds on crypto assets to retail clients. CLIENT PROTECTION According to the Head of CySEC, Demetra Kalogerou, the standards in the sphere of m...

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German regulator is planning to implement ban on binary options

...or is not the only one introducing national measures. **United Kingdom’s Financial Conduct Authority (FCA) has recently adopted the rules that will be used in order to regulate the retail trading industry, relating to contracts for difference (cfds).**According to the expectation, the FCA aims to adopt leverage caps for cfds from 2:1 to 30:1. Similar limitations were introduced by ESMA in Au...

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FCA will offer 30:1 margin leverage in government bonds

The Financial Conduct Authority (FCA) has recently published concluding statement with regards to caps on leverage, marketing restrictions, and mandatory risk warnings of contracts for difference (cfds) and cfd-like options sold to retail clients. The British regulator announced that its rules will be permanent. It is worth noting, that aforesaid regulations, that will be introduced next month...

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FCA is planning to restrict crypto derivatives

The UK's Financial Conduct Authority (FCA) is putting forward restrictions on the sale, marketing and distribution of derivatives such as cfds, options and futures, as well as exchange-traded notes (ETNs) linked to "unregulated transferable cryptoassets".The aforesaid restrictions shall apply to all retail consumers and firms operating or based within the country. The regulator describes these a...

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Forex Markets Related Regulations After Pandemic

...lines, Circulars within the existing regulatory framework. In August last year, the Australian Securities and Investment s Commission (ASIC) revealed its consultation paper which introduced to ban binary options and place leverage restrictions on cfds and regarding this paper ASIC has large response. ASIC has not implemented any changes yet, but in relation to coronavirus pandemic regulator has...

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CFTC Warns More Than 20 Forex Brands

... a series of cases uncovered massive fraud in the dubious industry. This time companies like Allegra Markets, IDB Traders/Baltic Concert LLP, Capital 245, MM Financial Experts, Coinexx, Omega Crypto, Crown Finance, Omega Capitals, EagleFX, Platin cfd, Easy Line Pro, Richmond FG, F1 Trade, Top Option 360, FX Dealer, Trade GF, FXVIP, Turnkey Forex, Global Capital Options, VIP Businesses, Grand Tr...

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Lawyers’ Lobbying Efforts result in lifting Crypto-Ban in Vanuatu

...dictions faces changes. Dealing with Cryptocurrencies was banned by Vanuatu authorities for a long time. If the VSFC license holder had a small reference to crypto on his website, regardless whether as a means for payment, a traded commodity or a cfd, VSFC license could have been revoked and the USD 50,000.00 bond forfeited – never-minding the fact, that Vanuatu is the most popular offshore l...

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Labuan Money Broking License

...rmance (as minimum of 3 years before submission of application) and it is required to undertake a functional operation of company in Labuan. There is no restriction for a Labuan money-broker to offer or provide trading of Contract for Difference (cfd) which include futures, shares, indices and other commodities* N.B. The money broker has to ensure that the product and services are within ...

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