For weeks, we’ve been sounding the alarm regarding the attempt by the European Securities and Markets Authority (ESMA) to strangle forex and CFD trading in Europe — the same way that the CFTC has strangled trading in the U.S.
Now Forex.com is organizing resistance to this regulatory overreach.
But, there isn’t much time remaining to take a stand.
The European Securities and Markets Authority (ESMA) intends to further restrict retail trader access to CFD’s and spot forex, and to ban altogether retail trading of binary options.
In particular, notice the threatened leverage restrictions in the Statement reproduced below.
ESMA continually uses the phrase “CFD’s including rolling spot forex”. Rolling spot forex is the technical term for our spot forex market – and, although we normally don’t consider our trades to be CFD’s, ESMA clearly does.
This move by ESMA is just the latest attempt by nanny government bureaucrats worldwide to eliminate the retail trading of products they deem to be too risky for us little folks.
Soon, retail forex traders in Europe will need a thread like this one to help them make their escape from the Euro Nanny State.
Thank you for that @Clint Sadly, overpaid beaurocrats getting involved with restricting our lives and wanting to grasp even more controls is one of the BIG reasons why those of us with a brain who value freedom have decided to Dump the European Economic Community we joined as they push it inexorably towards becoming an “Economic Union” where we have even less say.
I have to say I have some agreement with the negative equity proposal, But things like the restriction on leverage are draconian and the 50% stop-out is even worse for those (like me) who believe that the right way to operate an account is to keep a small amount of actual cash in it, but to refinance if the balance needs it and withdraw “winnngs” as a defence against possible broker error / insolvency.
This stupidity will initiate the Law of Unintended consequences and simply cause even more risk to punters by driving them offshore into the clutches of dubious “brokers” operating from unregulated (or even more poorly regulated) locations. “Scams” will become even more prevalent and these regulators will be to blame, although of course they too will “blame the Victims”
However, having had my little rant here, I would like to make my views known - can anyone spoonfeed us a link on how to actually do so please ?
The window for submitting responses is only open until 2359 Paris time on 5th Feb.
I’ve read that responses have gone over 4000 so far but we still need to be active if these proposals are going to be changed. My response to ESMA will go in today or tomorrow.
