Plus500 reacts on BaFin decision about CFD trading restrictions
Plus500, a leading online service provider for retail customers to trade CFDs internationally, has issued an update regarding BaFin, the German Federal Financial Supervisory Authority.
Below is the update as published by Plus500:
BaFin has now concluded its recent consultation (which commenced on 8 December 2016) and issued a final set of CFD trading restrictions to be implemented by 10 August 2017. The principal change is the implementation of negative balance protection where clients cannot lose more than their account balance.
Plus500 welcomes this protection mechanism for the industry and reiterates that the Company has always provided balance protection to its customers across all its product offerings in all its markets, as a core principle of its business model. Plus500 also notes that BaFin has not implemented any leverage limits. Therefore these changes will have no effect on its business.
Plus500 will continue to implement necessary adjustments to its business model when required by regulatory changes. The Company reaffirms that it does not have any regulatory restrictions in any of the Group’s regulated markets.
Source: Plus500