The International Organization of Securities Commissions (IOSCO) has issued a consultation report proposing policy measures for its members to consider when addressing the risks arising from the offer and sale of over-the-counter (OTC) leveraged products to retail clients. The OTC leveraged products that are covered in the consultation report are: rolling-spot forex contracts, contracts for differences and binary options.

The consultation report contains a toolkit that proposes a variety of policy measures that IOSCO members are encouraged to consider when determining their approach to address the specific risks arising from the offer and sale of OTC leveraged products to retail clients. The measures vary in their intrusiveness and range from a licensing requirement, which is a prerequisite for the adoption of the other measures included in the toolkit, to measures involving certain specific product features and to restrictions on intermediaries from offering the relevant products to retail clients, including a prohibition on such offers.

The deadline for comments on consultation report is 27 March 2018.

View IOSCO consults on proposed policy measures to protect investors of OTC leveraged products, 13 February 2018