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    New ESMA regulation on CFD’s in Europe!

    The year 2018 is the year of introduction of a single pan-European regulation on investor margin transactions (CFD/FOREX).

    On March 23, 2018, the European Securities Market Authority has decided to prohibit and restrict Private Investors' margin transactions and increase the level of protection of Private Clients.

    Changes come into effect on 1st of August, 2018 with the aim to protect even more the interests of Private Investors, regardless of their country of residence in transactions with high-risk derivatives (CFD/FOREX).


    • Risk Warnings. Private Clients will receive regular and standardized risk warnings as well as information about the percentage of the total loss on all CFD/FOREX accounts held by Renesource Capital. Read More
    • Negative balance protection. The purpose of this provision is to limit the loss of the Private Client's capital. Read More
    • Determination of leverage-limits (leverage financing) and consequent introduction of a standardized safety margin. Read More
    • Position closure rules, which foresees the closing of all positions on the CFD/FOREX accounts, if the balance of accounts has decreased to 50% of the amount of initially required financial collateral. Read More

    To read more about changes and their impact on CFD / FOREX transactions, click here.

    The new margin rates set by ESMA apply to all CFD/FOREX instruments available for trading, and will be applicable for positions opened before August 1, 2018.

    Renesource Capital considers the introduction of a unified regulation at the level of industry very positively, because not only the clients benefit from these changes, but also the financial intermediaries avail of the equal competitive conditions across the European Economic Area.

    The new ESMA restrictive measures do not apply to Professional Customers as well as Eligible Counterparties. This means that ESMA restrictions will not refer to Clients who are or intend to become Professional Clients.

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