FCA have announced they will be looking at the CFD market after
analysis showed that 82% of customers lost money, with and average loss
of £2200 per year, on CFD products.
They have said that
clients do not have enough understanding of CFD's and how they are
structured, or financed by brokers, and want to put in place measures so
that investors are better informed.
The FCA propose to;
They are currency in a consultation phase until March and will release a statement after.
On the face of it, it looks like retail traders could be seeing a reduction in leverage offered, and a rise in margins.
changes came from the FCA in the UK and have far reaching consequences
for the retail market in particular. Shares in companies like IG and CMC
tumbled on fears that trading volumes will be reduced significantly.
As part of its deliberations the FCA have asked traders to reply to the following questions: