ESMA agrees with the Czech Republic, Estonia and Slovakia over CFD, binary options restrictions

Maria Nikolova

The pan-EU watchdog issues positive opinions on the national product intervention measures proposed by the Czech Republic, Estonia and Slovakia.

The European Securities and Markets Authority (ESMA) continues to issue positive opinions about the planned restrictions on the offering of CFDs and binaries by the National Competent Authorities (NCAs) of European countries. The latest countries to receive positive assessment by ESMA are the Czech Republic, Estonia and Slovakia.

ESMA has issued opinions on national product intervention measures from:

  • The Česká Národní Banka of the Czech Republic (CNB)– Opinion on the proposed product intervention measure relating to binary options;
  • The Finantsinspektsioon of Estonia (FSA) – Opinion on the proposed product intervention measure relating to binary options;
  • The Finantsinspektsioon of Estonia (FSA) – Opinion on the proposed product intervention measures relating to contracts for differences;
  • The Národná Banka Slovenska (NBS)- Opinion on the proposed product intervention measure relating to binary options; and
  • The Národná Banka Slovenska (NBS) – Opinion on the proposed product intervention measures relating to contracts for differences.

ESMA’s opinion finds that the proposed measures are justified and proportionate. This is barely surprising as the proposed national measures are the same as those implemented by ESMA last summer. The difference is that the national measures are set to be implemented on a permanent basis.

This means that binary options marketing and offering to retail investors will be prohibited, whereas the offering of CFDs to such investors will be restricted (via measures like leverage caps).

A number of other countries have secured ESMA’s positive evaluation regarding their product intervention measures. The list includes Finland, Lithuania, Spain, Austria, Poland, the UK and the Netherlands.

It would be interesting to see how ESMA would react to the Cypriot proposals. Let’s recall that, CySEC has unveiled a proposal for national product intervention measures that envisage different leverage caps depending on the types of retail investors.

Read this next

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.

Digital Assets

WunderTrading brings automated crypto trading to United States

“Among developed countries, Americans are the heaviest users of cryptocurrencies, with 13% having invested in cryptocurrencies over the past year.”

Retail FX

ACY Securities sponsors child safety and family welfare charity Barnardos Australia

Sponsoring Barnardos will give ACY Securities and its employees an opportunity to do volunteer work through different outreach programs.

Digital Assets, Institutional FX

StoneX executes cash-settled BTC/USD swap for DriveWealth’s UK subsidiary

“Cash-settled swaps allow our clients to access the market movement of underlying digital assets without taking physical custody.”

Opinion

Driving competitive advantage from FX TCA to LPA – what’s it all about? 

Benjamin Disraeli once said, “as a general rule, the most successful man in life is the man who has the best information.” This line has never been more significant than in today’s data-fuelled financial markets, where detailed analysis of information can provide that all-important competitive edge – not just for now, but in the future.

<