Saxo Capital Markets: Esma leverage limits on CFDs good for industry
The policy will reward well-behaved retail FX brokers
The restrictions on the sale and marketing of contracts for difference (CFDs), introduced by the European Securities and Markets Authority in the summer of 2018, are good for the foreign exchange retail industry, says Andrew Edwards, chief executive of Saxo Capital Markets.
In particular, the bank welcomed Esma’s imposition of leverage limits on CFDs. And, since Saxo did not compete on leverage prior to the rules coming into effect, Edwards says the tightening has not had a noticeable effect
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