The EU securities markets’ regulator ESMA has announced earlier today that it will not renew the temporary restriction on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients in the European Union (EU).
LeapRate reminds that last year ESMA has taken product intervention measures relating to CFDs, imposing a temporary restriction on their marketing, distribution or sale.
Germany’s supervisor BaFin, on the other hand, has notified few days ago that the restrictions on the marketing, distribution and sale of financial CFDs to German retail clients will continue to apply in future.
NCAs have taken permanent national product intervention measures relating to CFDs that are at least as stringent as ESMA’s measures, ESMA will not renew its temporary restriction. Because of this, the current ESMA Decision (EU) 2019/679 measures will automatically expire at the end of the day on 31 July 2019.