The European securities and markets authority (ESMA) has extended for 3 months expiring on November 1, the restriction on the marketing, distribution and sale of contracts for difference (CFD) related to cryptocurrency. This decision was made because ESMA remained serious doubts as to the absence associated with these risk products for retail investors.
ESMA set limit leverage for retail clients to cryptocurrency CFD is 2:1, while for the major currency pairs – 30:1 for minor currency pairs, gold and major indices – 20:1, for products other than gold and minor stock indices and 10:1 for individual stocks and other control values – 5:1.
In addition, to limit losses of the client in ESMA supported the practice of protection account from the negative balance for each account, imposed a rule closing the margin for each account, limited incentives in the sphere of CFD trading, as well as standardized risk communication, including an indication of the percentage of losses in the accounts of retail investors CFD provider.
Recall that ESMA tightened position on the contracts for cryptocurrency derivatives in March this year. Earlier, France banned advertising cryptocurrency contracts for difference on electronic media, and in the UK investors in CFDs at the level of the financial regulator warned of the risks.
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