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CySEC cancels higher Forex leverage plans and applies ESMA rules

Samson Ononeme | Sep. 27, 2019
CySEC cancels higher Forex leverage plans and applies ESMA rules

CySEC cancels higher Forex leverage plans to enhance investor protection for all retail investors exposed to high-risk, speculative trading instruments.

September 27, 2019, | AtoZ Markets - The Cyprus Securities and Exchange Commission has today saying that it has made permanent the regulations introduced by the European Securities and Markets Authority (ESMA) last August.

CySEC scraps a risk-based approach to CFD leverage caps

The Cypriot regulator said that leverage 哪个平台能玩腾讯分分彩五星is now restricted, with highs of 30:1 on major currency pairs and the lows of 2:1 for cryptocurrencies on the opening of a position by a retail client.

CySEC Forex leverage, ESMA Forex leverage

Brokers will also have to put negative balance protection measures in place and won’t be allowed to provide welcome bonuses to market their services. The move to adopt ESMA’s measures marks something of a shift on the part of CySEC.

On May 30, CySEC released a consultation paper, saying that it was looking to adopt a different set of regulations than those put forward by ESMA. While certain marketing practices were restricted, those regulations would have allowed retail clients to trade with 50:1 leverage if they met a certain set of criteria.

However, in the statement it released today, CySEC said that it has abandoned this plan. The regulator wrote:

"Further to Consultation Paper (CP-02-2019) on 30 May 2019 which consulted interested
parties on the proposals for CyNPIMs, and for the avoidance of doubt, CySEC has not imposed
a risk-based approach to leverage limits.”

哪个平台能玩腾讯分分彩五星As a result, the rules being introduced by CySEC are almost similar to that of ESMA. The only difference between the two sets of regulations is the standardized risk warnings.

New Cypriot firms that have less than twelve months of retail client trading data will have to put a block of text on their websites stating that “the vast majority of retail client accounts lose money when trading in CFDs.

哪个平台能玩腾讯分分彩五星On the other hand, ESMA states that brokers must state the percentage of traders who lose money when using their services, something that Cypriot firms with over a year of client trading data are now required to do.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.