The Financial Conduct Authority (FCA) is set to extend the retail market ban of contract for differences (CFDs) and binary options, which was proposed by pan-European regulator ESMA earlier this year, to include "closely substitutable products".
In March, ESMA introduced a number of EU-wide temporary measures for the provision of CFDs, including a ban on the sale or marketing of binary options to retail investors. Following a consultation as announced in January, the pan-European regulator introduced leverage limits and negative balance protection on CFDs, while also banning the marketing, distribution or sale of binary options to retail clients and restricted sales to retail clients of CFDs, including rolling spot forex and financial spread bets. CFDs are contracts between an investor and an investment bank or a spread-betti...
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