Attention: ESMA Product Intervention Measures
Dear Valued Client,
We would like to bring to your attention that the European Securities and Markets Authority (ESMA) has issued a temporary product intervention measures on the provision of Contracts for Differences (CFDs) for the protection of retail investors within the European Union. What are the new rules that will impact my trading account?
Leverage limits on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying:
- Leverage 30:1 for major currency pairs
- Leverage 20:1 for non-major currency pairs, gold and major indices
- Leverage 10:1 for commodities other than gold and no-major equity indices
- Leverage 5:1 for individual equities and other reference values
- Leverage 2:1 for cryptocurrencies
For detail information on the products, please click here.
The additional measures below are already implemented by FxNet.
- A margin closes out rule on a per account basis, at 50% of minimum required margin.
- Negative balance protection on a per account basis, providing a guaranteed limit that your balance will not drop below zero.
- Restriction of incentives offered to clients.
- Standardized risk warning.
When will the changes come into effect?
The relevant measures will start to apply from 1st of August 2018 for all CFDs.
What do I need to do?
As a Retail Client please note that these rules will not impact positions, which have been open by you at any time before the 1st of August 2018, but you need to be aware and adapt your activities in the coming months, in particular to the change in leverage that will apply to your account; you may need to add funds to your account to keep your positions open or wind down your positions. Important Note: The above restrictions will not apply to Professional Clients however, please be aware that being classified as a Professional means you will forfeit some protections that currently cover Retail Clients.
If you wish to find out more about your current categorization or request a change of your categorization, please contact our support department at [email protected]