MoF comments on new Polish Forex leverage restrictions


Has the Polish MoF decided to delay the implementation of the new Polish Forex leverage restrictions? According to some sources, this is the case, but the MoF did not make an official announcement. Hence, AtoZForex.com team investigated and contacted the MoF. 

3 November, AtoZForex – The Polish jurisdiction is known for being strict on CFD and Forex margin requirements and allowable leverage. Back in 2015, Poland was the first in EU countries to set maximum leverage for Retail FX positions at 100x. 

In July this year, the MoF had proposed to introduce a draft law to reduce max Forex leverage to 25x. It includes a margin of 4% in FX trading. The Ministry also proposed to impose doubling fines to unlicensed brokers too.

MoF proposes plan to limit leverage on Forex

Now, the question remains, when will the new CFD and Forex restrictions be implemented? An obstacle could be ESMA’s 2018 agenda, considering that ESMA plans to issue recommendations on leverage in trading early next year. Also, ESMA wants to see it implemented across Europe. Due to this reason, last year the UK regulator FCA decided to delay its proposed leverage restrictions. The FCA’s proposal included a hard 50x leverage cap on FX and CFD brokerage.

The MoF is worrying that the Polish traders will switch to offshore or even unlicensed brokers if it puts too many rules. These offshore brokers are offering more relaxed trading conditions, but in return, the traders are less protected. A good example, is the situation in Belgium after the FSMA introduced a ban on all leveraged OTC derivatives, binary options and CFDs. The licensed brokers were forced to withdraw and cut ties with Belgian clients.

Are the new Polish Forex leverage restrictions delayed?

According to some news outlets in the market, sources close to the MoF had disclosed that the new Polish Forex leverage restrictions will be delayed. After ESMA issues its recommendations on leverage in trading. However, this was not officially announced by the Polish MoF. Hence, AtoZForex team has contacted the MoF media department regarding the issue. In response, the ministry denies the delay in introducing new rules on leverage in FX and CFD trading. The Polish MoF Media Department commented to us the following:

“There are no plans to postpone works on the draft law on amendments to the Act on Trading in Financial Instruments which specifies the minimum level of margin deposit required for financial instruments. The legislative work in this respect is ongoing with the next round of public consultations being planned soon.”

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