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27/01/2016 ESA/2016/07 The cross-selling of financial products – ESA request to the European Commission , Letter PDF
90.04 KB
12/07/2019 ESMA35-36-1743 Statement Product Intervention Statement PDF
104.99 KB
15/12/2017 ESMA71-99-910 Statement on preparatory work of the European Securities and Markets Authority in relation to CFDs and binary options offered to retail clients , Statement PDF
209.47 KB
30/05/2018 ESMA71-99-991 Statement of the EBA and ESMA on the treatment of retail holdings of debt financial instruments subject to the Bank Recovery and Resolution Directive , Statement PDF
926.71 KB
27/07/2012 2012/476 Reply of ESMA to the European Commission’s Green Paper on Shadow Banking Letter PDF
175.94 KB
06/05/2020 ESMA35-43-2391 Reminder of firms’ MiFID II conduct of business obligations in the context of increasing retail investor activity , Statement PDF
118.75 KB
28/06/2017 ESMA35-36-885 Product Intervention- General Statement , Statement PDF
123.04 KB

This statement provides an update on the European Securities and Markets Authority’s (ESMA) work in relation to the sale of contracts for differences (CFDs), binary options and other speculative products to retail investors.

 

ESMA has been concerned about the provision of speculative products such as CFDs, rolling spot forex and binary options to retail investors for a considerable period of time and has conducted ongoing monitoring and supervisory convergence work in this area. In this context, ESMA has previously published a number of Q&As on CFDs and other speculative products[1] to foster supervisory convergence, having established a CFD Task Force in July 2015, and also issued a further investor warning on the sale of CFDs, binary options and other speculative products in July 2016[2].

 

However, ESMA remains concerned that these supervisory convergence tools may not be sufficiently effective to ensure that the risks to consumer protection are sufficiently controlled or reduced. ESMA is therefore discussing the possible use of its product intervention powers under Article 40 of MiFIR to address investor protection risks in relation to CFDs, rolling spot forex and binary options.

 

ESMA is in the process of discussing the possible use of its product intervention powers under Article 40 of MiFIR, the possible content of any such measures, and how they could be applied. However, ESMA can confirm that the measures being discussed for (i) CFDs and rolling spot forex and (ii) binary options include proposals that take into account a number of measures that have been adopted or publicly consulted on by EU National Competent Authorities. These measures include leverage limits, guaranteed limits on client losses, and / or restrictions on the marketing and distribution of these products.

 

In accordance with Article 40 of MiFIR, any intervention measures must be approved by the ESMA Board of Supervisors and can only come into effect from 3 January 2018 at the earliest[3].

02/06/2016 2016/902 MiFID practices for firms selling financial instruments subject to the BRRD resolution regime Statement PDF
259.47 KB
05/09/2018 ESMA70-151-1719 Letter to VP Dombrovskis on opinion on SFTR Letter PDF
213.13 KB
01/10/2018 ESMA70-156-236 Letter to the Commission on MiFID II third country regime Letter PDF
152.92 KB
28/01/2014 2013/1941 Letter to Jonathan Faull (EC) regarding draft technical standards , Letter PDF
44.25 KB
23/02/2015 2015/168 Letter to EU Institutions re ESMA’s 2015 Work Programme , , Letter PDF
37.31 KB
Dear Mr Gualtieri, Ms Ribkina and Commissioner Hill, On 30 September 2014 we sent you ESMA’s Work Programme for 2015, which was based on the budget request that had been approved by ESMA’s Board of Supervisors: a budget of €38,639,000 and 147 Establishment Plan posts. The EU budget had not been voted at the time. Following the adoption of the EU budget, ESMA’s 2015 expenditure budget is €33,601,402 (plus an additional €3,100,000 from assigned revenues for tasks delegated from National Competent Authorities) with an Establishment Plan of 137 posts. ESMA’s Board of Supervisors has approved a revised work programme to account for the difference of €5m and 10 Establishment Plan posts; representing a 15% reduction compared to the planned ESMA budget and 7% of its Establishment Plan. ESMA will therefore lack sufficient resources to execute all the tasks that were initially planned for 2015. The Work Programme explains the areas where reprioritisation had to take place, including the risk that ESMA will not fully meet its legal obligations, for instance due to the delay of delivery compared to legally set timetables. A summary of the deprioritised tasks is annexed to the Work Programme and reproduced in the table below. 2014/1200rev ESMA Work Programme
17/11/2015 2015/1513 Letter SM to EC- implementation timeline MiFID MiFIR Letter PDF
85.8 KB
05/09/2018 ESMA70-151-1651 Annex 1 Letter from European Commission on SFTR draft RTS Letter PDF
159.5 KB
01/10/2018 ESMA35-36-1442 IPISC UK withdrawal from the EU Letter Letter PDF
234.85 KB
20/03/2020 ESMA35-43-2348 ESMA Statement on COVID-19 telephone recording , Statement PDF
114.12 KB
26/04/2016 2016/648 ESMA response to the Commission Green Paper on retail financial services Letter PDF
197.44 KB
06/05/2020 ESMA71-99-1321 ESMA registers SFTR TRs , , Statement PDF
95.4 KB
07/11/2018 ESMA71-99-1058 ESMA new SC chairs , , Statement PDF
142.32 KB
06/07/2017 ESMA71-99-522 ESMA appoints new member to its Management Board , Statement PDF
144.98 KB