ESMA/FCA: Opinions in relation to MiFIR

ESMA has issued three opinions concerning product intervention measures in relation to CFDs and binary options taken by the French, Swedish and UK national competent authorities. However, with regard to the UK product intervention measures, ESMA has stated that certain measures are not "justified and proportionate". These specifically concern FCA’s proposal not to apply the national restrictions to CFD-like option providers authorised in other Member States other than through a UK branch or tied agent in respect of the sale or distribution of those products to UK retail clients and FCA’s proposal to apply a 30:1 leverage limit for CFDs referencing certain government bonds, instead of the 5:1 leverage limit in ESMA’s measures. FCA has published a press release in response.