Does your liquidity provider really cover your liability with negative balance protection under ESMA? LeapRate

ESMA ceases renewal of product intervention CFDs measures

March 14, 2019 BY Valentina Kirilova

Does your liquidity provider really cover your liability with negative balance protection under ESMA?

This article was written by Shobin Mathew Simon, Institutional Sales Associate at Advanced Markets Group. The European Securities and Markets Authority (ESMA) has implemented a range of measures intended to protect retail clients who are trading leveraged products, such as CFDs. The product intervention measures mandated by ESMA, under Article 40 of the Markets in…

September 13, 2018 BY LeapRate Staff

Exclusive: IS Prime sees surge in business from Cyprus Forex brokers following CySEC negative balance ruling

LeapRate Exclusive... LeapRate has learned that London based FX liquidity and prime brokerage services provider IS Prime has become a prime (no pun intended) beneficiary of the new ESMA Negative Balance Protection rules, with the company experiencing a surge in business from Cyprus based clients following regulator CySEC's ruling on both 125k (i.e. matched principal) and 730k…

July 24, 2018 BY LeapRate Staff

Exclusive: IS Prime to offer Negative Balance Guarantees to Forex Brokers in response to ESMA

LeapRate Exclusive... LeapRate has learned that FX liquidity and prime brokerage services provider IS Prime, part of ISAM Capital Markets, has embarked on a campaign which is seeing it offer negative balance guarantees to Retail FX brokers, on a case by case basis. The FCA regulated Prime of Prime brokerage has apparently developed this offering following requests…

June 01, 2018 BY LeapRate Staff

ESMA sets dates for Binary Options ban and CFD leverage cap

Pan European financial regulator ESMA has announced the dates from which it will enforce new rules governing online trading and brokerage. We would note, however, that the new rules - banning Binary Options in the EU and restricting leverage on CFDs as outlined in more detail below - are temporary and will only be in…

May 21, 2018 BY LeapRate Staff

Admiral Markets adds limited risk Admiral.RisqueLimité account for France CFD traders

Estonia based Retail FX brokerage group Admiral Markets has announced that in line with the French CFD regulatory requirements it will now offer a new account type called Admiral.RisqueLimité, designed with an emphasis on protection of retail clients from risks connected to trading in the financial markets. The account is being offered via the company's FCA…

February 14, 2018 BY LeapRate Staff

IOSCO wants all securities regulators to enforce CFD leverage limitations, negative balance protection

The International Organization of Securities Commissions (IOSCO) has published a Report on Retail OTC Leveraged Products, providing its own guidance to the world's financial and securities regulators on the future of leveraged trading. IOSCO members include virtually all of the key major (and minor) global regulators including the FCA in the UK, the SEC in the…

February 05, 2018 BY LeapRate Staff

ESMA received 'unprecedented volume' of thousands of responses to CFD rule proposals

Will ESMA change its mind? While all formal indications to date indicate that ESMA plans to carry through with its new rules governing online trading - including a 30x leverage cap on CFDs - insiders within ESMA have admitted that the pan-European regulator has seen a virtual deluge of responses to its proposals, numbering in…

January 18, 2018 BY LeapRate Staff

ESMA moves forward with CFD trading rules, considers Crypto 5x leverage limit

Exactly a month after dropping its bombshell proposal of a hard 30x cap on CFD leverage, European pan financial regulatory body ESMA has taken the next step in enacting its proposals by formally opening a 'call for evidence' from the public and affected parties to give formal feedback on its proposals. The consultation period will…

January 16, 2018 BY LeapRate Staff

Saxo Bank launches entry level Essential account with negative balance protection on OTC leveraged products

Copenhagen based multi asset broker Saxo Bank has announced the launch of a new entry level account, called Saxo Essential, with industry leading pricing and prudent risk limits on margin trading of OTC products. The introduction of Saxo Essential coincides with recent regulatory initiatives aimed at reducing the amount of leverage available to retail clients…

December 21, 2017 BY LeapRate Staff

Let your voice be heard on ESMA's 30x Forex leverage plan!

Pan-European financial regulator ESMA's plans to severely restrict the online trading business in Europe, if implemented, will have far-reaching effects for traders and brokers alike. ESMA's proposals include: 30x leverage cap on Forex and CFD trading ban on 'bonus' payments to retail traders ban on Binary Options trading required negative balance protection for retail clients…

Tag: negative balance protection