Will Spain CNMV restrict CFDs? CNMV reviews 2017 regulation

The Spanish watchdog plans to review CFD regulation in 2017. Will Spain CNMV restrict CFDs following the regulation review?

9 March, AtoZForex – The trend against the CFDs market has been recently leaning towards the negative. As more regulators are planning to tighten the oversight of the offering of highly speculative financial instruments. Will the Comision Nacional del Mercado de Valores (CNMV) of Spain, follow the market trend? Considering that the Spanish regulator plans to review its regulations this year on CFDs.

Will Spain CNMV restrict CFDs?

The Spain’s financial market regulator CNMV recently issues its Activity Plan for 2017 defining four strategic areas of focus. One of the areas of focus for the discussion in today’s article is to safeguard the investors. The regulator did not mention whether it intends to impose restriction or to ban the complex high-risk products altogether. Will Spain CNMV restrict CFDs following 2017 regulation reviews is questionable. In fact, CNMV notes that it will evaluate possible investor protection initiatives for highly speculative products in 2017. According to the Spanish watchdog, it also plans actions to deal with cold calling from financial entities.

The CNMV puts an emphasis on strengthening financial education and support to investors. Accordingly, the regulator can accomplish this by reforming the investor section of its website. In particular, the CNMV will help support the publication of technical guides and criteria for the investors. Below you can read the Spain financial regulator CNMV 2017 Activity Plan.

Highly speculative products under whistleblowers’ watch

Because of the complex nature and the risk associated with the financial instruments such as CFDs, Forex, and binary options, they have been continuously under watch by many financial authorities. Just last week, we informed the readers of AtoZForex.com that the Central Bank of Ireland is considering to ban the sale and distribution of CFDs in the country. This followed after the Malta’s MFSA issued a risk warning against such high-risk financial products. One more recent ban on marketing of CFDs, Forex, and binary options is the one laid by the Dutch regulator AFM. Furthermore, the Cypriot watchdog CySEC and Italian CONSOB have also issued warnings against such products last month.

In addition, Belgium, Germany, and France are the other EU member states to join the team to fight against the high-risk financial instruments. Moreover, Israel Securities Authority (ISA) is also a new team member to make trading of such products illegal in the country. Meanwhile, the consultation regarding the CFD regulation proposals outlined for CFD leverage cap by the UK FCA closed on March 7, 2017. We are eagerly waiting to see how the UK CFD landscape is reshaped because of the new rules. It is likely that the UK watchdog will chip in for the changes to be implemented by other European regulators.

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