What France’s New Legislation Means for easyMarkets Traders
February 7, 2017 4:12 am
In the latter half of 2016, France’s Financial Markets Authority (AMF) reported an increase in the number of complaints received against binary options and forex brokers. After consultation, the AMF proposed adding supervisory measures on marketing communications regarding financial contracts.
What Changed?
Article L. 533-12-8 of the French Monetary and Financial Code stipulated a ban on marketing communications which included binary option contracts; or Contracts for Difference (CFD) that have a leverage greater than five.
This was accompanied by similar restrictions among EU regulators, such as the FCA in the UK CySEC in Cyprus and Holland which is also banning advertising for leveraged trading products. Altogether, these moves have shaken the industry leaving many brokers struggling to find their foothold.
Overview of New European Legislation
Contracts for difference (CFD) where the leverage is greater than 1:5
Brokers must now provide a guaranteed stop loss on client positions
Brokers must now provide negative balance protection
easyMarkets Responds
At easyMarkets we welcome the new rulings as we are already fully-compliant with these risk management conditions. CEO Nikos Antoniades stated: “The AMF ban is already enhancing our position in the industry and we have welcomed many new clients from these regions. We already offer negative balance protection, guaranteed stop loss and many more risk management tools completely free for our clients.”
With a focus on risk management and education, easyMarkets embraces any legislation intended to protect traders and reinforce safer trading.
In the latter half of 2016, France’s Financial Markets Authority (AMF) reported an increase in the number of complaints received against binary options and forex brokers. After consultation, the AMF proposed adding supervisory measures on marketing communications regarding financial contracts.
What Changed?
Article L. 533-12-8 of the French Monetary and Financial Code stipulated a ban on marketing communications which included binary option contracts; or Contracts for Difference (CFD) that have a leverage greater than five.
This was accompanied by similar restrictions among EU regulators, such as the FCA in the UK CySEC in Cyprus and Holland which is also banning advertising for leveraged trading products. Altogether, these moves have shaken the industry leaving many brokers struggling to find their foothold.
Overview of New European Legislation
easyMarkets Responds
At easyMarkets we welcome the new rulings as we are already fully-compliant with these risk management conditions. CEO Nikos Antoniades stated: “The AMF ban is already enhancing our position in the industry and we have welcomed many new clients from these regions. We already offer negative balance protection, guaranteed stop loss and many more risk management tools completely free for our clients.”
With a focus on risk management and education, easyMarkets embraces any legislation intended to protect traders and reinforce safer trading.
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http://www.amf-france.org/en_US/Actualites/Communiques-de-presse/AMF/annee-2016.html?docId=workspace%3A%2F%2FSpacesStore%2Fad42eecc-9720-49da-82a8-2ddcb72fbf1d
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Source: Easy Forex Forex.Info
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