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The FCA expects to consult on whether to apply these measures on a permanent basis to firms offering CFDs and binary options to retail clients. This restriction consists of: leverage limits on opening positions; a margin close out rule on a per account basis; a negative balance protection on a per account basis; preventing the use of incentives by a CFD provider; and a firm specific risk warning delivered in a standardised way.
Before the end of the three months, ESMA will consider the need to extend the intervention measures for a further three months. NCAs analyses for binary options also found consistent losses on retail clients accounts. The new measures on CFDs will for the first time ensure that investors cannot lose more money than they put in, restrict the use of leverage and incentives, and provide risk warning for investors.