The European Securities and Markets Authority (ESMA) has announced that it will impose restrictions on options offered to euro banknote providers (CFDs) and binary alternatives. According to new measures, the ability of cryptographic security to CFDs is limited to a maximum of 2: 1.
The European Securities Market Regulator limits the leverage provided by CFD service providers
The European Securities and Markets Authority has agreed on what it describes as "temporary intervention measures [CFDs] and binary alternatives to retail investors in the European Union".
The new measures show that the limitations of the leverage effect of critical CFDs are limited to a maximum of 2: 1. The agreements also stipulate that traders give an initial margin of "50% CFD's conceptual value when the target [asset] is an encryption currency" t.
New measures See crown changes Harshest rules for CFDs
ESMA has noted that CFDs in critical currencies are stated that "CFDs in which the crypto currencies are in the background give rise to distinct and significant concerns for CFDs from other underlying assets.
The regulatory authority noted that "Krypto currencies are a relatively immature asset class that poses major risks to investors." ESMA expressed "concerns about the integrity of the price-setting process in the underlying cryptographic market", arguing that such "makes retail customers inherently difficult to value these products".
The Authority noted: "Due to the characteristics of the different securities, the market for financial instruments in the asset class that provides critical currencies, such as CFDs, is closely monitored." ESMA will assess, on the basis of its findings, whether stricter measures are needed. "
The new rules that are meant to be "coming weeks"
The measures also show the 30: 1 restrictions on "large currency pairs", 20: 1 "for non-traded currency pairs, gold and large indices", 10: 1 "for commodities other than gold and capital indices," and 5: 1 "for individual shares and other benchmarks ".
ESMA notes that it "intends to take these measures in the official languages of the EU in the coming weeks."
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