Respond to the ESMA proposals

This is a discussion on Respond to the ESMA proposals within the T2W Feedback & Announcements forums, part of the Off the Grid category; We want to help raise awareness about a consultation paper, produced by the EMSA (European Securities and Markets Authority), proposing ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Feb 1, 2018, 1:52pm   #1
The Staff are paid members employed by T2W to perform some specific role such as editorial, advertising or technical work.
 
Sharky's Avatar
Joined Nov 2000
Respond to the ESMA proposals

We want to help raise awareness about a consultation paper, produced by the EMSA (European Securities and Markets Authority), proposing changes on CFDs and binary options that would affect retail investors across the EU. The ESMA has invited comment on it's proposals and in particular for specific questions which are summarised in Chapter 4 of consultation paper (and reproduced below).

What are the proposals?

The proposals are aimed at retail investors only, most of which are designed to increase conduct standards across the industry. These are sensible and should be supported. More controversially, there are proposed restrictions to leverage, which you may or may not agree with, but which could have an impact on your ability to trade. ESMA has proposed introducing leverage limits of 30:1 to 5:1 on retail trading. The proposals would increase the margin required to open a CFD trade or (spread bet - can anyone confirm this?) on EUR/USD to 3.33%, the DAX to 5%, and equities to 20%.

You can read the full proposals here:
https://www.esma.europa.eu/sites/def...il_clients.pdf

When do I need to respond by?

ESMA will consider all comments received by 5th February 2018.

How can I submit my comments?

As described here: https://www.esma.europa.eu/press-new...ures-contracts you can submit directly to the ESMA through a dedicated email address: CFECFDBO@esma.europa.eu

Alternatively IG have set up a brand-neutral website called #ReplytoESMA at http://replytoesma.trading. Obviously brokers like IG would be adversely affected by the proposals so it's important to be mindful that they're pursuing their own interests. Nevertheless we support raising awareness of these propsoals and how the website makes it easy to respond.

What are the specific questions?

A: Do you think that ESMA has adequately identified the instruments in the scope of its possible measures?

B: What impact do you consider that the introduction of leverage limits on the basis described above (applying to retail clients only) would have on your business? Please describe and explain any one-off or ongoing costs or benefits.

C: What impact do you consider that the introduction of a margin close-out rule on a perposition basis (applying to retail clients only) would have on your business? Please describe and explain any one-off or ongoing costs or benefits.

D: What impact do you consider that the introduction of negative balance protection on a peraccount basis (applying to retail clients only) would have on your business? Please describe and explain any one-off or ongoing costs or benefits.

E: What impact do you consider that a restriction on incentivisation of trading (applying to retail clients only) would have on your business? Please describe and explain any one-off or ongoing costs or benefits.

F: What impact do you consider that a standardised risk warning (applying to retail clients only) would have on your business? Please describe and explain any one-off or ongoing costs or benefits.

G: Please provide evidence on the proportion of retail clients that use these products for hedging purposes and how the suggested measures will affect them.

H: What impact do you consider that a prohibition on providing binary options to retail clients would have on your business? Please describe and explain any one-off or ongoing costs or benefits.

I: What impact do you consider that the envisaged measures would have on retail investors?

J. Do you believe that specific restrictions concerning CFDs in cryptocurrencies should be introduced? In particular, what impact do you consider that assigning a leverage limit of 5:1 to such CFDs would have on firms’ business and / or any expected additional benefits for retail clients? How would such an impact compare to that from the possible alternatives of lower leverage limits such as 2:1 or 1:1, or a prohibition on the sale, marketing and distribution of such CFDs? Please describe and explain any one-off or ongoing costs or benefits
__________________
* New to the site? Introduce yourself. Before posting don't forget to read our Community Constitution
* New to trading? Ask a question in the First Steps forum
Sharky is offline   Reply With Quote
Thanks! The following members like this post: tomorton , jm1054 , Sonicscooter
Old Feb 4, 2018, 12:30am   #2
Joined Oct 2008
Bump:Today, Sunday is the last day you can have your say.
Jason101 is offline   Reply With Quote
Thanks! The following members like this post: tomorton , Sonicscooter
Old Feb 4, 2018, 8:23pm   #3
Joined Jul 2004
>13 000 now

probably a couple of days before they have read all
Attached Thumbnails
x.png  
kalott is offline   Reply With Quote
Old Feb 4, 2018, 11:24pm   #4
Joined Oct 2008
Quote:
Originally Posted by kalott View Post
>13 000 now

probably a couple of days before they have read all
Back up and running now.
Edit: Cut off is tomorrow night.

Last edited by Jason101; Feb 4, 2018 at 11:34pm.
Jason101 is offline   Reply With Quote
Old Feb 5, 2018, 10:37am   #5
The Staff are paid members employed by T2W to perform some specific role such as editorial, advertising or technical work.
 
Sharky's Avatar
Joined Nov 2000
Sharky started this thread Thanks Jason101 for the bump. Just to confirm you have until the end of today (Mon, 5th Feb) to send in your feedback. The #ReplyToESMA shows the cut off as 10pm UK time (11pm CET).
__________________
* New to the site? Introduce yourself. Before posting don't forget to read our Community Constitution
* New to trading? Ask a question in the First Steps forum
Sharky is offline   Reply With Quote
Thanks! The following members like this post: Sonicscooter
Old Feb 8, 2018, 1:05pm   #6
Joined Feb 2009
The summary of results is interesting:

https://replytoesma.trading/data.html

As is IG's response to ESMA:

https://replytoesma.trading/src/asse...r_evidence.pdf
jm1054 is offline   Reply With Quote
Old Feb 8, 2018, 2:43pm   #7
The Staff are paid members employed by T2W to perform some specific role such as editorial, advertising or technical work.
 
Sharky's Avatar
Joined Nov 2000
Sharky started this thread Very interesting, thanks for sharing @jm1054. I suggest brewing a large cup of coffee to get through IG's response, it's very detailed!
__________________
* New to the site? Introduce yourself. Before posting don't forget to read our Community Constitution
* New to trading? Ask a question in the First Steps forum
Sharky is offline   Reply With Quote
Thanks! The following members like this post: jm1054
Old Feb 8, 2018, 6:00pm   #8
Joined Feb 2002
Well done to the 98%.

Has anyone else seen the suggestion to LCG SB clients that they can apply for professional account status?
tomorton is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Does the Market Respond to Karma? higherSelfishness Forex 63 Jan 15, 2013 8:30pm
My proposals for improved T2W Technically Fundamental T2W Feedback & Announcements 214 Oct 27, 2009 10:40pm
I will not respond but I will listen for once. Technically Fundamental The Foyer 21 May 18, 2009 4:15am
Does this site have any proposals jasone First Steps 2 Apr 2, 2009 8:10am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)