Spain set to review CFD regulation

Maria Nikolova

More clarity on the proposed measures for investor protection is expected in the first half of 2017.

The list of regulators seeking to tighten the oversight of the offering of complex and high-risk financial products is growing. Spain’s CNMV (National Securities Market Commission) is the latest regulatory body to join this list.

The Spanish watchdog has published its 2017 Activity Plan based on four strategic areas, with enhanced investor protection being one of them.

The regulator does not elaborate on how precisely it will implement its goals, but notes that in the first half of 2017, it will “evaluate possible investor protection initiatives for complex high-risk products (such as CFDs)”. The CNMV also says it plans measures to tackle cold calling from financial intermediaries.

CNMV’s statement resembles a lot one of the alternatives that the Central Bank of Ireland has outlined in its attempt to limit investor losses. One of the options that the Irish regulator proposes is a ban on the sale and/or distribution of CFDs to Irish investors. The other option, which seems to be the one that the Spanish regulator is considering too, is introducing extra protection for investors instead of banning the CFD distribution altogether. The Irish regulator envisages measures like curbing maximum leverage and introducing negative balance protection. The Spanish regulator does not specify any particular steps in this direction.

Instead, the CNMV puts an emphasis on boosting investor education and reforming the Investor section of its website. The benefits of such a move, however, are not clear. Most likely, there will be a raft of warnings against unregulated companies – an approach that does not seem to be very effective, if we consider the experience of nations like France or Italy.

Let’s also note that CNMV’s Activity Plan does not mention binary options. It appears that this problem either does not exist in Spain (very unlikely) or is neglected at this point.

Meanwhile, the consultation regarding the CFD regulation proposals outlined by the UK Financial Conduct Authority (FCA) closed on March 7, 2017. We are impatient to see how the UK CFD landscape is reshaped as a result of the new rules. It is likely that the FCA will set the tone for the changes to be implemented by other European regulators.

Read this next

Retail FX

Weekly Roundup: Funded Trader closure, Coinbase adds Apple Pay

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

blockdag

Presale Rush: BlockDAG Outshines Furrever Token and DeeStream Presales with 20,000x ROI Potential, Raising Over $16.4M

Discover April 2024’s presale hits, as BlockDAG, Furrever Token, and DeeStream Presales battle it out. Which will explode in 2024?

Digital Assets

Shakeeb Ahmed gets three-year sentence for hacking Nirvana, Crema

A New York court has sentenced computer security engineer Shakeeb Ahmed to three years in prison for conducting flash loan attacks on decentralized cryptocurrency exchanges in 2022, marking the first-ever conviction for a breach involving smart contracts.

Digital Assets

TON Foundation teams up with HashKey on fiat access for Telegram Wallet

The TON Foundation, a collective of developers behind The Open Network (TON) blockchain, has entered into a strategic partnership with digital asset financial services firm HashKey Group.

blockdag

BlockDAG aka Kaspa’s Toughest Competitor Releases DAGpaper, Lightes Up The Las Vegas Sphere Pulling Shiba Inu Investors & Amassing $16.4M in Presale

BlockDAG, emerging as a Kaspa competitor, unveils its DAGpaper, spotlighting the Las Vegas Sphere and captivating Shiba Inu investors with a $16.4M presale success.

Fundamental Analysis

Global FX Market Summary: USD, ECB, Gold, Oil  April 12 ,2024

A strong US economy, cautious Fed policy compared to Europe, and safe-haven demand are all fueling the surge of the US Dollar.

Digital Assets

Thai crypto exchange Bitkub eyes $3 billion valuation

Thailand’s largest cryptocurrency exchange Bitkub is gearing up for a public offering next year with a potential valuation of up to $3 billion, according to Bitkub Capital Group CEO Jirayut Srupsrisopa.

Technical Analysis

GBPUSD Technical Analysis Report 12 April, 2024

GBPUSD currency pair can be expected to all further toward the next support level 1.2400, target price for the completion of the active minor impulse wave.

Market News

Navigating Currency Trends: Extensive Analysis on EUR/USD Signal

Traders Union provides comprehensive daily analysis and signals for EUR/USD.

<