FCA and ESMA crackdown

[spiderman]

Hello

 

I have heard about the EU proposals on a crackdown in the spread betting markets recently, but can anyone tell me how exactly this would impact on a retail trader like myself. I have made a small amount of money trading indices and forex over the past 2 years.

 

Would I have to increase my account to keep old trades (that are in profit) open?

Is it all markets that will be affected or just digital 100's etc?

Will it only affect new positions which will be opened when the new rules come in to force.

 

[Trevbeats]

Hi spider-Man did your questions Answered. give me a shout discuss our next choices and options to keep trading.

 

I have been trading with IG for about a year and a half all is going well it looks like we might have to find another broker is not connected to the European with this ridiculous margin increase okay be good to hear from you Trev..

[Caseynotes]

May already have happened as IG has changed the margin requirements for many markets over the last 3 or 4 months as well as offering a professional category to clients which includes a better margin level than the new normal retail level. Certainly the date for implementation of MiFID II has just past (3rd Jan).

 

There is a Q & A  pdf paper on changes here.

 

https://www.esma.europa.eu/sites/default/files/library/esma35-43-349_mifid_ii_qas_on_investor_protection_topics.pdf

 

 

[JamesIG]

Hi - this article was published on Leaprate today. 

 

https://www.leaprate.com/forex/regulations/esma-cfd-trading-rules-crypto-leverage-limit/ 

 

The call to evidence can be accessed here: https://www.esma.europa.eu/press-news/esma-news/esma-consults-potential-cfd-and-binary-options-measures-protect-retail 

 

[Guest straddle]

Are regular options (not binary) considered as CFD's ???

[Kodiak]

" The restriction only applies to cash-settled CFDs (or those which may be settled in cash at the option of one of the parties other than by reason of default or other termination event). ESMA has confirmed that warrants and turbo certificates are not in scope, despite their similarities with CFDs. Conversely, securitized derivatives that are CFDs would be in scope were any to be issued (ESMA is not currently aware of any)."

 

https://finreg.shearman.com/european-securities-and-markets-authority-confirm

[Guest straddle]

"CFDs that will be subject to the restrictions are any derivative other than an option, future, swap"

 

 

Are traded options included or excluded?

[JamesIG]

---

 wrote:

"CFDs that will be subject to the restrictions are any derivative other than an option, future, swap"

 

Are traded options included or excluded?

---

They would be included. 

[Caseynotes]

   Most of the MiFID changes went through with the new IG 'Terms ans Conditions Agreement' I think we are still waiting on ruling regarding the decreased leverage (increased margin) which was proposed before consultation.

[spiderman]

Do you know when a decision is due?