Regulatory Alerts2020-05-29
Added · Updated
Securities Industry (Contracts for Differences) Rules, 2020
The Securities Commission mandates that firms and individuals providing Contracts for Differences (CFDs) in The Bahamas must register under specific categories and meet strict capital, physical presence, and personnel requirements, including appointing a resident CFD Supervisory Officer. The rules impose conduct standards requiring fair pricing, timely contract notes, and robust risk management systems, while prohibiting trading in binary options with retail clients. For retail clients, the regulations enforce standardized risk warnings with firm-specific loss percentages, require margin to be posted in cash, and set minimum margin thresholds of 0.5% for most assets and 5% for digital assets, alongside negative balance protection.