FMA officially makes ESMA Rules Permanent
Regulators accepting the European Securities and Markets Authority rules and making them permanent within their financial authorities are becoming prominent across the European Union. As of May 13th, 2019 the Austrian Financial Market Authority revealed that they would be making the ESMA’s rules permanent. This means that Austria will now have fully realized product intervention measures for CFD’s and Binary options.
These rules, which were introduced last year cancelled-out binary options and also placed caps onto leverages. These caps applied to only retail customers trading in FX or CFD. The Austrian FMA commented saying, “The FMA informed ESMA that the national measure is the same as ESMA’s measure at the national level, with the difference that the national measure would not expressly prohibit participating in circumvention activities.”
The Austrian financial regulation will be making small changes to the legislation. This will include minor amendments to the risk warnings listed in the ESMA regulation, and the FMA’s regulation will sport a different definition for virtual currencies. These old and new rules can be expected to take effect on May 30th, 2019 as the European regulator has given the FMA the green light to move ahead.
FMA following other Regulators
The FMA might be the latest financial regulator to make these rules permanent, but they aren’t the first. Financial regulators from France, the Netherlands and Germany have all make the European Securities and Markets Authority regulation permanent in their markets.
The Financial Conduct Authority in the United Kingdom also fully plans to inherit these rules as their own, even though Britain and the U.K. are both leaving the European Union. However, this will still allow for the British regulator to govern over the trading space. There is one critical difference between the FCA’s rules and the ESMA’s regulation. The British regulator plans to include turbo contracts and all other products similar to CFDs into their rules.