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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...
Path: BlogCySEC 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...
Path: BlogASIC’s strengthens consumer protections by reducing CFD leverage
...rence (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 Markets Authority (esma) in 2018. The new regulations also stipulate negative account protection by ensuring that clients are not able to lose more than their trading...
Path: BlogDiversified reporting in no-deal Brexit scenario
...ruments Regulation (MiFIR) and Securities Financing Transactions Regulation (SFTR) requirements. Investment companies regulated in EU currently must submit their trades/transactions for EMIR, MiFIR and SFTR to an ARM and TR. TRs are authorised by esma at an EU level. ARMs are authorised by the local National Competent Authority. However, any TR or ARM authorised by the Financial Conduct Authori...
Path: BlogNew requirements for Lithuania and UK EMIs
...any EMIs in regulatory uncertainty. 6 AMLD, which should come into practice in December, will not be implemented in the UK. As the Financial Conduct Authority (FCA) will not be considered as a part of the European Securities and Market Authority (esma) post Brexit, there is not a mandatory obligation for the UK to introduce 6 AMLD principles. On the other side, Lithuania EMIs which are licen...
Path: BlogForex Markets Related Regulations After Pandemic
...and individuals are allowed to operate and how these firms are supervised. FCA ensure that unacceptable firms and individuals are stopped and removed from the regulated sector as quickly as possible. The European Securities and Markets Authority (esma) and other regulators have decided to extend a few upcoming reporting obligations or proposed amendments to upcoming regulations accounting for p...
Path: BlogNew Legal Framework for Forex and CFD Brokers in Bahamas
... the law. Additional reporting requirements will be implemented specifically regarding CFD transactions, as well as standardized risk warnings and formats, which is similar to requirements introduced by the European Securities and Markets Authority (esma). Taking example from esma, and from other European regulators who have largely followed its lead, the SC has cracked down problems that they de...
Path: BlogTurbo 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...
Path: BlogSingapore's new retail trading regulation cuts FX Leverage to 20:1
... regulations that came into effect this week cut FX leverage by more than half. **The Monetary Authority of Singapore issued new regulations that imply that retail investors now only have access to 20:1 leverage.** Nevertheless, as with the recent esma’s regulations, there are also some loopholes in Singapore’s retail trading rules. For example, having a special status of an accredited inves...
Path: BlogToo old for trading
...ors protection in Japan and Europe are absolutely different. European brokers pay a lot of attention to the professional skills of their clients, the other aspects like age, gender remains untouched. While European Securities and Markets Authority (esma) banned certain products and imposed restriction on leverage, the **Japanese government has focused on the needs and profiles of investors**. ...
Path: BlogCySEC has introduced a new reporting form for CIFs
...o this date and that failure to submit the requested information will result in fines. CySEC did not clarify why it is seeking to collect trading volume data. It could be an effort, to evaluate how product intervention measures, introduced by the esma last August, have affected the industry. Read our blog to keep abreast of all interesting and actual forex news.
Path: BlogAustralian securities and investments commission proposes CFD restrictions and binary options ban
...ions are a result of the regulator's concerns about the loses that Australian retail investors have received and will continue to receive from binary options and CFDs. In the sense of CFDs, much like the European Securities and Markets Authority (esma), Australian Securities and Investments Commission (ASIC) has suggested several restrictions, in particular enforcing leverage limits, improving ...
Path: BlogGerman crypto companies will require BaFin license as of next year
...rom next year, **new regulation in Germany will require cryptocurrency companies to obtain a license issued by the Federal Financial Supervisory Authority (BaFin)**. Crypto derivatives will not fall under these regulations, but remain subject to the esma’s current restriction and any future proposals by the BaFin regarding the sale of these instruments to retail investors. Based on the new AM...
Path: BlogFCA will offer 30:1 margin leverage in government bonds
... 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, will be as substantial and important as the rules that esma introduced in August 2018. The FCA only mentioned one slight change to these rules, specifically the FCA would be changing leverage for one range...
Path: BlogGerman regulator is planning to implement ban on binary options
**German Federal Financial Supervisory Authority (BaFin) has restated that sale, distribution and marketing of binary options to retail customers will remain prohibited in the country.** BaFin, in response to the expiry of esma's (European Securities and Markets Authority) temporary measure, has announced its own prohibition measures. German regulator stated that permanent ban would be in forc...
Path: BlogAustralian commision requires each and every piece of information about its brokers
...ount of client’s funds held in each jurisdiction. **Additional attention to European clients** According to the data which the ASIC has requested from brokers and the reporting period, it seems that the regulator is seeking to understand how esma’s regulation affected the local market. The brokers are also required to disclose to the regulator how many clients were transferred from overs...
Path: BlogAustralia adopted a new product intervention law
Under the new law, the Australian Securities and Investments Commission (ASIC) is gaining the same powers esma has in Europe, but it might be limited in using those for the next two years. The Design and Distribution Obligations and Product Intervention Powers Bill or simply Treasury Laws Amendment has recently passed both houses of Australian Parliament. **A new bill is going to essential...
Path: BlogFinancial conduct authority of the UK has banned binary options for private investors
...is restriction will now remain permanent in force.** This decision, adopted by the regulator, did not come as a big surprise to market participants. The FCA’s rules, in general, are the same as the European Securities and Markets Authority’s (esma) temporary restrictions regarding binary options. At the same time, the FCA is also applying its rules to so-called ‘securitized binary options...
Path: BlogFATF votes to greylist Malta. Global anti-financial crime watchdog advises enhanced monitoring for Malta
...s briefing has been scheduled for this Friday. It is not clear if an official position on Malta will be announced until its final assessment document is published at some point between August and September. When contacted earlier this week, a spokesman for the FATF would not even confirm that Malta is being reviewed by the global watchdog, saying the process is entirely confidential. Now dec...
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