Regulatory Alerts2023-07-11
ESMA Opinion on Spanish CNMV Product Intervention Measures for CFDs and Other High-Risk Products
The European Securities and Markets Authority (ESMA) issued an opinion on the product intervention measures proposed by the Spanish Comisión Nacional del Mercado de Valores (CNMV) to restrict the marketing and sale of contracts for differences (CFDs) and other high-risk leveraged products to retail clients. The proposed measures include a comprehensive ban on advertising communications, sponsorship, and specific remuneration practices for CFDs, alongside mandatory initial margin and margin close-out protections for other high-risk derivatives. ESMA evaluated these national measures to determine if they are justified and proportionate given the significant investor protection concerns and high loss rates observed among retail investors in Spain.