ESMA’s rules for CFDs, binaries face uneven implementation across EU nations, France warns

Maria Nikolova

Chairman of France’s financial markets authority says some nations may simply do away with the restrictions on CFDs and binary options.

The first day of June was marked by the announcement by the European Securities and Markets Authority (ESMA) on the formal adoption of the new rules for offering CFDs and binary options to retail investors. Implementation issues are now high on the agenda, with France being one of the nations questioning the willingness of all EU members to put the new rules into practice.

In his latest speech before the French Senate, Robert Ophèle – Chairman of France’s financial markets authority AMF, welcomed ESMA’s efforts to restrict the offering of high-risk CFDs and to impose a ban on binary options.

He stressed that the national authorities now will get to decide on how to implement the rules – they have the right, for instance, to implement the restrictions on a permanent basis. Mr Ophèle said that he notices that certain nations are tempted to adapt the restrictions in a certain way – with regard to the CFD leverage cap or the underlying assets covered by the new rules. He said he could not exclude the possibility that some countries may simply suspend the restrictions within their territories.

This stance echoes recent critical comments made by Mr Ophele. In May this year, he greeted the efforts of ESMA to impose restrictions on the offering of risky financial products. He noted that although ESMA will impose restrictions temporarily, the national regulators may impose them on a permanent basis.

“I observe, however, that this approach is far from homogenous in Europe as you have probably noticed yourself thanks to the match Marseille v Madrid. Our Spanish friends tolerate the sponsorship of their teams by financial intermediaries that specialize in toxic products, a practice that we were able to eradicate in France and that is prohibited by the Sapin 2 law”, said Robert Ophèle.

In his most recent speech before the Senate, Mr Ophele went one step further in his efforts to put an end to the offering and advertising of toxic products to French investors.

“I would like to make use of my presence here to plead in favor of an extension of the remit of the provisions of the Sapin 2 law beyond Forex and binary options to allow us to block the access to sites illegally offering investments in various goods – such as diamonds and crypto-assets”.

The AMF chairman reiterated that during the first four months of the year, the consumer information center of the regulator treated more than 4,000 enquiries, with some 700 of them concerning crypto-assets.

Read this next

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.

Digital Assets

FalconX launches Prime Connect on Deribit

“We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

<