The European Securities and Markets Authority (ESMA) has published an updated version of its Q&A on the application of MiFID to the marketing and sale of financial contracts for difference (CFDs) and other speculative products to retail clients (such as binary options and rolling spot forex).
The Q&A includes 5 new questions and answers in sections 6 to 9, which address the following topics:
- the use of trading benefits when offering CFDs or other speculative products;
- the withdrawal of funds from trading accounts;
- the use of leverage when offering CFDs or other leveraged products to retail clients; and
- best execution obligations for firms offering CFDs or other speculative products to retail clients.
View ESMA updates Q&As on CFDs and other speculative products: October 2016, 11 October 2016