Plus500 'Not Impacted' By FCA's Proposed CFD Restrictions

Retail trading giant Plus500 has responded to Friday’s announcement by the Financial Conduct Authority (FCA), saying it will not be affected by any changes to Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term that the British regulator makes.

Crushing any hopes of a new regulatory regime outside of the European Union, the FCA said on Friday that it is considering plans to make many of the European Securities and Markets Authority’s product intervention measures permanent.

Introduced in August, the product intervention measures, which put caps on leveraged trading, have to be renewed by ESMA every three months in order for them to stay in effect.

Citing customer protection, the FCA said that, if the laws are made permanent, it will ban binary options and put caps on Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term that will range from 2:1 to 30:1 depending on the asset class.

Plus500: already prepared

CMC Markets and IG Group, two of the retail industry’s biggest players, have already released statements responding to the FCA’s announcement. Both companies said that they had anticipated the regulatory changes and that they were already in accordance with the rules which the FCA proposed in its statement.

In a statement released via the London Stock Exchange news service, Plus500 said almost exactly the same thing. The broker noted that it has already adopted the proposed rules as they are akin to those that were imposed by ESMA back in August.

“The Company acknowledges the FCA announcement, noting it already operates in compliance with these proposed changes,” said Plus500. “It has never offered binary options and so is not impacted by this proposed intervention.”

The broker also said that it does not foresee any changes to its revenue outlook.

The industry response to the FCA’s proposed rule changes is unsurprising. As Finance Magnates reported in September of this year, almost no one expected ESMA to not renew its product intervention measures. In fact, the opposite was true, with most expecting local authorities to make the rules, or similar rules, permanent.