EBA/ESMA: Contracts for difference

EBA/ESMA has published a document which warns retail investors of the dangers of investing in CFDs. It states that retail investors should only consider trading in CFDs if they have extensive experience of trading in volatile markets, if they fully understand how these operate and have sufficient time to manage their investment on an active basis. It is noted that concurrently with the publication of this warning, the EBA is addressing an internal Opinion under Art. 29 of the EBA Regulations to national supervisory authorities on the prudential supervision of CFDs.