CFD

Subscribe to CFD via RSS

On July 1, the UK Financial Conduct Authority (FCA) published a policy statement (PS19/18) containing rules on restricting contract for difference (CFD) products and CFD-like options sold to retail clients.

The FCA consulted on the rules in December 2018 in CP18/38 (for more information, see the December 14, 2018 edition of Corporate & Financial Weekly Digest). In PS19/18, the FCA confirms that for CFDs and CFD-like options sold to retail clients, firms will be required to:
Continue Reading FCA Confirms Permanent Restrictions on Sale of CFDs and CFD-Like Options to Retail Consumers

On December 7, the UK Financial Conduct Authority (FCA) published a consultation paper on restricting contract for difference (CFD) and other derivative products sold to retail consumers.

In its consultation paper, the FCA is proposing to intervene in the CFD market to address allegedly poor conduct by firms offering CFD products to retail customers, and to limit the sale of CFDs and similar products with excessive risk features that could result in harm to such customers. The FCA has proposed rules that will require firms to:
Continue Reading FCA Publishes Consultation Paper on Restricting CFD Products Sold to Retail Clients

On October 31, the decision by the European Securities and Markets Authority (ESMA) to renew and amend the temporary restriction on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients was published in the Official Journal of the European Union (OJ).
Continue Reading Renewed Restriction on CFDs Published in the OJ

On January 10, the UK Financial Conduct Authority (FCA) published a “Dear CEO” letter that it has sent to providers and distributors of contract for difference (CFD) products to retail customers.

The letter reminds firms that CFDs are high-risk, complex financial products and refers to the FCA’s recent review of the CFD market. During the review, the FCA assessed the conduct of firms providing the CFD service and firms that distribute the product and deal with the retail customer.
Continue Reading FCA “Dear CEO” Letter to CFD Providers and Distributors Highlights Concerns Following Review of CFD Market

On February 2, the Financial Conduct Authority (FCA) published a “Dear CEO” letter (Letter) setting out the FCA’s findings from a review of client take-on procedures for firms that offer contract for difference (CFD) products to clients.
Continue Reading FCA Publishes “Dear CEO” Letter in Relation to Client Take-On Procedures for CFD Products