ESMA CFD Intervention: New EU regulations of forex

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Following a more than a year-long preparatory work, a regulatory guideline that is often referred to as the ESMA CFD intervention got recently published. These are new regulatory measures affecting online brokerages operating in the European Union and investors using these brokers as a vehicle to achieve their investment goals.

The press release headline of the supranational regulator is more than telling:

ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors.

What is ESMA?

The European Securities and Market Authority is safeguarding the EU’s financial stability to enhance investor protection. The finalized CFD regulation and forex regulation measures will have to be implemented by each member state of the EU mandatorily.

Who is affected by this ESMA CFD intervention?

As mentioned earlier ESMA is a pan-European authority, thus the measures will affect brokerages under EU jurisdictions. Without listing all, some of the other major players are affected: Saxo Bank, CMC Markets, XTB, and City Index.

Reprinted from Brokerchooser, the copyright all reserved by the original author.