CMC Markets broker response to the BaFin CFD trading in Germany sanctions, As many investors lost their money by high margin CFD trading, Now the Federal Financial Supervisory Authority or Bafin is going to limit CFDs companies in Germany, ForexSQ conducted CMC Markets response to BaFin CFD trading sanctions below.
CMC Markets Responses To Bafin
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CMC Markets plc (“CMC”) notes yesterday’s announcement by BaFin regarding the marketing, distribution and sale of CFD products to retail clients.
The BaFin consultation paper requires CFD providers to ensure that retail clients cannot lose more money than is deposited in their account, a functionality which is already available to CMC Markets clients in Germany. On the basis of the consultation paper, there are no other requirements from BaFin including no leverage limits, and where retail clients’ risk is limited to their deposits, there is no prohibition on marketing, distribution and sale of CFDs.
We welcome this balanced approach from BaFin and will respond to the consultation in accordance with the proposed timeline of 20 January 2017. CMC Markets is the leading provider in Germany and has had the largest retail CFD market share, based on the latest independent Investment Trends research, since the start of the study in 2011.
CMC Markets brokerage was founded in the UK in 1989 and listed on the London Stock Exchange (LSE) in 2016. Almost thirty years of experience trading in financial markets has created a loyal following of traders who regularly use this award winning platform for investing their money in various international financial marketplaces.
CMC Markets UK is licensed and regulated by the Financial Conduct Authority of the United Kingdom (FCA), one of the strictest regulatory agencies in the world. In 2015 the firm developed and introduced a proprietary platform for trading binary options called “Countdowns,” which is also licensed and regulated by the FCA, but is also overseen by the Gambling Commission.
CMC Markets forex trading broker also maintains US and Australian branches that provide traders with opportunities to trade in the US and Australia, which are regulated by the Commodities and Futures Trading Commission (CFTC) in the US and the Australian Securities and Investment Commission (ASIC) in Australia.
