ESMA Praises Binary Bans, CFD Restrictions in New Legal Opinions
- The pan-European regulator said all financial authorities should introduce permanent measures that are as strict as its own
On the same day as the Central Bank of Ireland confirmed that it would be permanently banning binary options and placing restrictions on the marketing and sale of contracts for difference (CFDs), the European Securities and Markets Authority issued five positive opinions on the introduction of similar rules by other national regulators across Europe.
Over the past couple of months Czech, Slovak, and Estonian regulators have all introduced rules that mirror those introduced by the pan-European regulator last August.
That means bans on the sale and marketing of binary options to clients in or out of the jurisdiction covered by the regulator.
It also means 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 caps and marketing restrictions for CFD brokers. Firms are likely to be capped at 30:1 on major currency pairs, 20:1 for exotics and 2:1 for Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.
On top of that, they’ll be forbidden from offering welcome bonuses to their clients. Risk warnings will also be mandatory on any information they release that is intended for clients.
Great joy
And, of course, ESMA is extremely pleased that this is happening.
Written from the dark confines of their bureaucracy-loving offices in Paris, the pan-national regulator issued five legal opinions this Wednesday, fawning over the Cyprus-destroying rules that the Eastern European regulators have put in place.
In each case, ESMA said that the rules implemented were “justified and proportionate.” The regulator added that it expects all national regulators to implement rules that are as strict, if not more, than those brought in by last year’s product intervention measures.
On the same day as the Central Bank of Ireland confirmed that it would be permanently banning binary options and placing restrictions on the marketing and sale of contracts for difference (CFDs), the European Securities and Markets Authority issued five positive opinions on the introduction of similar rules by other national regulators across Europe.
Over the past couple of months Czech, Slovak, and Estonian regulators have all introduced rules that mirror those introduced by the pan-European regulator last August.
That means bans on the sale and marketing of binary options to clients in or out of the jurisdiction covered by the regulator.
It also means 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 caps and marketing restrictions for CFD brokers. Firms are likely to be capped at 30:1 on major currency pairs, 20:1 for exotics and 2:1 for Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.
On top of that, they’ll be forbidden from offering welcome bonuses to their clients. Risk warnings will also be mandatory on any information they release that is intended for clients.
Great joy
And, of course, ESMA is extremely pleased that this is happening.
Written from the dark confines of their bureaucracy-loving offices in Paris, the pan-national regulator issued five legal opinions this Wednesday, fawning over the Cyprus-destroying rules that the Eastern European regulators have put in place.
In each case, ESMA said that the rules implemented were “justified and proportionate.” The regulator added that it expects all national regulators to implement rules that are as strict, if not more, than those brought in by last year’s product intervention measures.