Following the European Securities and Markets Authority’s (ESMA) Board of Supervisors decision of 23 March 2018, several restrictions have been imposed on the provision of contracts for differences (CFDs) to retail investors in the European Union (EU). The agreed measures among them include:
- Maximum leverage limits on opening positions by retail client from 30:1 to 2:1, which vary according to the volatility of the underlying:
- 30:1 for major currency pairs – in these the underlying asset consists of two of the following currencies: USD, EUR, JPY, GBP, CAD, CHF (for example: USD/EUR, CHF/JPY and not JPY/RUB);
- 20:1 for non-major currency pairs, gold and major indices, limited to: ASX200, CAC40, DAX30, DJIA, EURO STOXX50, FTSE100, NASDAQ, NASDAQ 100, Nikkei225, S&P500;
- 10:1 for commodities other than gold and non-major equity indices;
- 5:1 for individual equities and other reference values.
These changes have entered into force at the beginning of the 3rd quarter of 2018 for the period of 3 months with the possible extensions for the next 3 months and apply only to retail investors in EU*.
* If you are an EU retail investor and wish Larson and Holz to apply to you the above-mentioned leverage limits, please, contact the Company’s support desk and the Company’s staff will allocate you to the corresponding group.