Dutch regulator prepares to implement ESMA restrictions on CFDs, binaries on permanent basis

Sourced from: https://financefeeds.com/dutch-regulator-prepares-implement-esma-restrictions-cfds-binaries-permanent-basis/

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Germany and the UK have acted in the same way regarding ESMA’therefore rules. The FCA’s suggested interventions would be exactly the same in substance since ESMA’s, although the united kingdom regulator is also proposing to apply its principles to closely substitutable products, including so-called turbo certifications. The regulator can also be envisaging 30:1 leverage limitations to CFDs assigning certain authorities bonds (in comparison to 5:1 under ESMA’s measures).

The number of European countries that are trying to implement the item intervention measures introduced with the European Securities and Markets Authority (ESMA) in a federal level is growing. The ESMA steps , as FinanceFeeds’ readers likely know, impose a ban on the supplying of binary choices to retail investors, in addition to limitations on the supplying of CFDs to retail investors. Whereas ESMA’s limitations are temporary, a number of European countries are looking into implementing these rules on a permanent basis.
The article Dutch regulator prepares to apply ESMA limitations on CFDs, binaries on permanent basis appeared initially on FinanceFeeds.
AFM’s analysis has shown that there’s a substantial reason for concern about buyer protection. The regulator therefore plans to take measures with regard to the previous products.
The AFM is expected to publish the measures at April 2019.

The most recent addition to the this set of countries is that the Netherlands, as the Dutch Authority for the Financial Markets (AFM) has unveiled its plans to prohibit binary options and also to introduce restrictions to the lending of CFDs to retail investors in accordance with ESMA’s principles. All these, however, will not be temporary but will last permanently.