UK’s very well known and beloved financial watchdog FCA (Financial Conduct Authoritiy) has announced today that it delayed implementation of new trading rules on CFD products. FCA has been working on a package regarding new leverage and other operational rules for CFD trading in last several months which includes lowering leverage to 50:1.
Today’s announcement states that the decision to delay follows the announcement made by the European Securities and Markets Authority (ESMA) on its consideration to review the leveraged sector.
From FCA’s statement;
Given progress in ESMA’s own consideration of the use of its product intervention powers in this area, the FCA has decided to delay making final conduct rules for UK firms providing CFDs to retail clients, pending the outcome of ESMA’s discussions.
Therefore it looks like FCA is going to wait until ESMA comes with its own new trading rules and follow suit. The announcement says that ESMA’s product intervention powers can only come into effect from 3 January, 2018 at the earliest.