Retail forex broker FXCM Group has also released a statement in support of yesterday’s announcements by the European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA) relating to additional customer protections. Further, FXCM hopes this leads to harmonized regulations across Europe.
FXCM has long been in full compliance with most of the proposed rules.
London-based competitor IG Group Holdings plc (LON:IGG) called the planned move “disproportionate”, GAIN Capital is warning that the move, if implemented, is likely to unintended consequences, Plus500 stated that it “welcomes this statement and the strong regulatory framework that this will bring to the industry.”, Saxo Bank has also come out strongly in favour of new FX and CFD brokerage rules .
FXCM’s complete statement on ESMA’s proposals follows:
We do not offer binary options, and do not provide ‘top-up’ bonuses. We have always had an auto-liquidation process when minimum margin requirements are not met and we have always protected clients from debit balances. FXCM fully supports measures that will result in better customer outcomes and bring uniformity to the European regulatory landscape for the FX and CFD industry. We note that the proposed leverage limitations are more restrictive than what is allowed in other jurisdictions, including the US and Australia, and hope these new requirements do not result in business being driven off shore to unregulated or under regulated markets.
FXCM will participate in the consultation period in January 2018 and we encourage our clients to do the same.
FXCM offers superior execution, competitive pricing, and a diverse suite of innovative trading tools and education all focused on providing the best trading environment for our customers.