On 24 February 2026, the European Securities and Markets Authority (ESMA) issued a statement reminding firms of their obligation to assess whether newly offered products fall within scope of existing product intervention measures on contracts for differences (CFDs).
ESMA has issued this statement in response to the increased offering of derivatives, often marketed as perpetual futures or perpetual contracts, that provide leveraged exposure to underlying values, including crypto-assets. These financial instruments are likely to fall within the scope of the existing national product intervention measures on CFDs adopted by national competent authorities.
Where these derivatives meet the definition of a CFD, they are subject to the applicable product intervention requirements, including leverage limits, a mandatory risk warning, a margin close-out and negative balance protection, and the prohibition of monetary and non-monetary benefits.
The statement also reminds firms that:
- Given their complexity, derivatives require a narrow target market, supported by an aligned distribution strategy.
- When providing non-advised services, an appropriateness assessment must be carried out in accordance with the relevant requirements for complex financial instruments.
- Firms should take appropriate steps to identify, prevent, or manage conflicts of interest that may arise from the offering of these products.