By Anna Fedorova
The new rules prohibit the marketing, distribution and sale of binary options and place notable restrictions on the distribution of CFDs to retail investors.
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Peter Hetherington, IG |
The latter consists of strict leverage limits on opening positions; a margin close-out rule and negative balance protection on a per account basis; preventing the use of incentives by a CFD provider; and an obligation to include a firm-specific risk warning on the marketing material.
The original proposals divided opinion in the market, with some companies supporting the new rules, while many retail traders called the measures “draconian”.
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