Providers of FX contracts for differences will be monitoring their trading volumes closely over the coming weeks to see whether warnings of clients moving to unregulated providers come to pass.
The European Securities and Markets Authority (ESMA) measures restricting the marketing, distribution or sale of contracts for difference (CFDs) to retail investors took effect from 1 August.
The measures include leverage limits on opening positions (30:1 for major currency pairs and 20:1 for non-major currency pairs); a margin close-out rule on a per-account basis; a negative balance protection on a per-account basis; preventing the use of incentives by a CFD provider; and a firm-specific risk warning delivered in a standardised way.
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