What you need to do:
The European Securities and Markets Authority (ESMA) is considering some proposals which are highly likely to affect your trading. You have until 5 February to respond to ESMA, and we would strongly encourage you to do so.
- Fill in the form
Complete this simple editable response form
- Save it
Save the form on your computer
- Send it back to us
Email it to firstname.lastname@example.org and we will send the form to ESMA on your behalf.
Alternatively, if you choose to upload the form directly to ESMA's website you will see there are a few extra details required to complete your submission:
- Under ‘Activity’, please select ‘Individuals’ from the bottom of the dropdown
- Under ‘Institution’, please write ‘N/A’
Please note your contribution may be published once the consultation closes, unless you request otherwise by ticking the checkbox on the submission page.
What are the proposals?
The proposals are designed to increase conduct standards across the industry. We largely support these changes, but feel the leverage restrictions are disproportionate and too restrictive.
ESMA’s leverage proposals include:
- 30:1 leverage on major currency pairs = 3.33% margin
- 20:1 leverage on major indices = 5% margin
- 10:1 leverage on commodities (excluding gold) = 10% margin
- 5:1 leverage on equities = 20% margin
As you can see from the tables below, these proposals would severely increase the margin required to trade:
|Market||Size||Current Margin Required||ESMA Proposed Margin|
|Germany 30||10 CFDs||£591||£591|
|Brent Crude||10 CFDs||£493||£4,930|
You can read all the proposals in full here.
It’s important to remember that your account will not be affected unless, and until, ESMA’s proposals become rules. We will let you know well in advance of any changes to your account.
If you would like more information or have any questions, please contact us.