Brokers see mixed impact from Esma crackdown
Several brokers believe Esma’s decision will be good for retail investors, while others expect a flight to more lenient jurisdictions
The reaction of retail brokers to the crackdown on binary options and contracts for difference (CFDs) by the European Securities and Markets Authority has been mixed, ranging from disappointment to welcoming it.
On March 27, Esma announced it was banning the marketing, distribution and sale of binary options to retail investors. At the same time, the European regulator revealed its decision to standardise margin closeout rules across the European Union, as well as negative balance protection
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