9 December 2016
CMC Markets plc ("CMC") notes yesterday’s announcement by BaFin regarding the marketing, distribution and sale of CFD products to retail clients.
The BaFin consultation paper requires CFD providers to ensure that retail clients cannot lose more money than is deposited in their account, a functionality which is already available to CMC Markets clients in Germany. On the basis of the consultation paper, there are no other requirements from BaFin including no leverage limits, and where retail clients’ risk is limited to their deposits, there is no prohibition on marketing, distribution and sale of CFDs.
We welcome this balanced approach from BaFin and will respond to the consultation in accordance with the proposed timeline of 20 January 2017.
CMC is the leading provider in Germany and has had the largest retail CFD market share, based on the latest independent Investment Trends research, since the start of the study in 2011.
Geoffrey Pelham-Lane/Ed Gascoigne-Pees/Jennifer Renwick Tel: 020 3757 4994