UK online trading leader IG Group Holdings plc (LON:IGG) issued a brief response to yesterday’s new directives from German financial regulator BaFin on CFD trading.
The IG press release on the matter reads as follow:
08 December 2016
IG GROUP HOLDINGS PLC
Response to BaFin Announcement regarding CFDs
IG Group (“IG”, “the Company”), a global leader in online trading, notes today’s intended measure issued by BaFin, a supervisor of the Company’s activities in Germany, regarding the marketing, distribution and sale of CFDs to retail clients.
The BaFin announcement proposes that the marketing, distribution and sale of CFDs to retail clients in Germany can only be undertaken if the client is not at risk of losing more than the value of their account.
The Company considers the BaFin proposal to be consistent with IG’s recent introduction of Limited Risk Accounts, which guarantee that a client cannot incur losses in excess of the amount deposited in their account.
IG firmly believes in robust and proportionate regulatory oversight of the CFD sector in all the markets in which it operates. The Company has operated and will continue to operate to the highest standards in the industry.
IG will carefully consider the full implications of the BaFin announcement and will be seeking to meet with BaFin before responding to the consultation, in accordance with the timeline provided of 20 January 2017.