Polish KNF Seeks Traders’ Feedback on 100:1 Leverage

The local regulator defied the ESMA restriction last year to offer higher leverages.

The Polish Financial Supervision Authority, popularly known as KNF, is conducting a survey to gather feedback on the traders’ sentiments with the performance of the brokers and the offered services.

“The impact of product intervention in the case of CFDs on the domestic market of these derivatives was subject to constant monitoring in order to assess the effects of the introduced restriction,” the KNF noted.

Out of the 15 questions on the survey, the most highlighted one is the regulator’s interest in known traders’ opinions on the higher leverages offered by the locally regulated brokers.

“Have you started investing or have you returned to investing in CFDs with a Polish broker as a result of the increase in leverage on some underlying assets that occurred from August 2, 2019?” the survey questioned.

Defying the EU Regulations

Despite the restrictions by the European Securities and Markets Authority (ESMA) on the leverages offered by the European brokers, the KNF defied the framework and allowed locally regulated brokers, offering up to 100:1 leverage on derivative some assets.

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The KNF further asked the traders if their ‘CFD trading performance’ improved or deteriorated with the higher leverage offered by the Polish brokers following the ESMA curb.

Additionally, the regulator enquired if the traders still continue to trade on “brokers outside the European Union.”

“If you are currently investing in CFDs through a broker from the European Union (including Polish), are you considering opening an account with a broker/brokers from outside the European Union?” the regulator asked.

The traders can participate in the survey throughout December, and the inputs will be gathered anonymously.

Though local regulators, like KNF, are trying to lure traders with higher leverages, major watchdogs are in favor of reducing risks. Similar to ESMA’s framework, Australia’s ASIC is going to impose similar restrictions on the leverage of retail derivative products.

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