Home / Regulatory Developments / Circular C199 (“the Circular”) dated 06.04.17 regarding ESMA’s Q&A document for the provision of CFDs and other speculative products to Retail clients under MiFID

Circular C199 (“the Circular”) dated 06.04.17 regarding ESMA’s Q&A document for the provision of CFDs and other speculative products to Retail clients under MiFID

Through the Circular, CySEC informs the Regulated Entities that ESMA published on 31st March 2017 an updated version of its questions and answers document (the “Q&A”) on the application of the Markets in Financial Instruments Directive (MiFID) to the marketing and sale of financial contracts for difference (CFDs) and other speculative products to Retail clients (such as binary options and rolling spot forex). Although the Q&A is targeted at National Competent Authorities (the “NCAs”), the answers also intend to help firms by providing clarity on MiFID rules. The Q&A includes six (6) new questions and answers in Section 10, which address pass-porting and the cross-border provision of services when offering CFDs or other speculative products outside the home Member State without the establishment of a branch or tied agent.

CySEC’s expects that: CIFs must ensure that they are acting in line with the Q&A and in general that they are in compliance with the relevant provisions of the Law. In case of infringement, CySEC will take the necessary supervisory actions provided in the Law.

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