ESMA updates product intervention FAQs

ESMA has updated its FAQs on the use of its temporary product intervention measures in respect of CFDs and binary options.  New questions:

  • state that turbo certificates are not within the scope of the CFD decision as they have different product features to CFDs, including that they are transferable securities for MiFID purposes and are typically listed and traded on a regulated market or MTF so are subject to additional transparency requirements. That said, ESMA says firms should consider whether the leverage in this products that is made available to retail investors means the product is offered on terms that are in the investor’s best interests; and
  • state that structured finance products are not within the scope of the decisions on either binary options or CFDs.