Potential mass exodus from Spreadbetters.

[Jason101]

If you are reading this thread and want your say in the consultation then do this...

1. Answer the ESMA's call for evidence on their Responce Form found on this page.

https://www.esma.europa.eu/press-ne...ures-contracts#registration-form_consultation

2. On the drop down tab enter "Individuals"

3. Under ‘Institution’ type ‘N/A’

4. Attach (upload) a brief or detailed complaint about the proposed margin changes. Using Microsoft Word or Excel.
(or any over pdf txt doc docx xls xlsx ppt pptx pps ppsx odt ods od format)

That's it your done. Have your say in under 5 mins.
You have until the end of the day Paris time on Sunday 4th February.

Edit: Closing date is end of day Monday 5th not Sunday 4th.
Edit: The esma site is back up and running now. But instead of requesting a submission in document form.
They are now only accepting a standard email (the address is in the link.)

 

[tomorton]

My two cents as a sheople:

1. Petitions dont matter. They are just another illusion to make it appear as though the people have a say

2. The elite brokers ( like IG etc. which are worth billions, potentially Rothschilds money ) are hand in glove ( and potentially owners of ) with regulatory bodies

3. Only one realistic aim - to screw anyone who loses, and not allow him / her the chance to declare bankruptcy

In short, another law by the classes to screw the masses.

Do you trade via UK financial spreadbetting or CFD's?

 

[jm1054]

Sorry, sort-of off-topic but bloody hell Tomorton, I've just been reading the thread about ESMA on FF!

I'm tempted to sign up just so that I can back you up in the discussion with those strange conspiracy-theorising SB haters!

You have a lot of patience, hats off to you!

Do you trade via UK financial spreadbetting or CFD's?

 

[tomorton]

Sorry, sort-of off-topic but bloody hell Tomorton, I've just been reading the thread about ESMA on FF!

I'm tempted to sign up just so that I can back you up in the discussion with those strange conspiracy-theorising SB haters!

You have a lot of patience, hats off to you!

Cheers jm.

Its a weird phenomenon. So many traders view SB firms as scammers who should be regulated out of business. Yet they can't back it up with evidence or experience: they feel they don't need to, as its just what "everybody knows".

 

[Splitlink]

Cheers jm.

Its a weird phenomenon. So many traders view SB firms as scammers who should be regulated out of business. Yet they can't back it up with evidence or experience: they feel they don't need to, as its just what "everybody knows".

I know that they are wrong---that's good enough for me. How do I know? I've traded EU, GU, Dax and UST today and have not lost on any of them. It's been a fairly brainless day, I agree but, still, how can I say that SB firms are scammers under those circumstances?

 

[tomorton]

ESMA press release confirms proposed restrictions on leverage -

https://www.esma.europa.eu/press-ne...ns-and-restrict-cfds-protect-retail-investors

 

[kalott]

ESMA press release confirms proposed restrictions on leverage -

https://www.esma.europa.eu/press-ne...ns-and-restrict-cfds-protect-retail-investors

"“The agreed measures ESMA is announcing today will guarantee greater investor protection across the EU by ensuring a common minimum level of protection for retail investors."

and what if the ones that really needs protection (use high leverage) move to other places with no regulation?

i may be wearing a tinfoil hat but i think this is a brexit thing and they dont care if anyone trading lose money

why did this happen just after brexit?

 

[tomorton]

"“The agreed measures ESMA is announcing today will guarantee greater investor protection across the EU by ensuring a common minimum level of protection for retail investors."

and what if the ones that really needs protection (use high leverage) move to other places with no regulation?

i may be wearing a tinfoil hat but i think this is a brexit thing and they dont care if anyone trading lose money

why did this happen just after brexit?

This has been a long time coming but I'm pretty sure the aim of it is to protect the civil servants and their political bosses from criticism, not to protect traders.

 

[sminicooper]

"“The agreed measures ESMA is announcing today will guarantee greater investor protection across the EU by ensuring a common minimum level of protection for retail investors."

and what if the ones that really needs protection (use high leverage) move to other places with no regulation?

i may be wearing a tinfoil hat but i think this is a brexit thing and they dont care if anyone trading lose money

why did this happen just after brexit?

My suspicion is that this is just an example of the EU's desire to punish UK for BREXIT. I don't think they like us being a world financial centre. Also, just another example of the nanny state – it's a shame that the EU doesn't concentrate on getting its real problems sorted out. Since time immemorial there have been losers in the financial markets of all kinds – and after all, the losers are essential if anybody's going to make some money!

No worries though! Our glorious leader the "MayBot" can just dump all these regulations when we leave in 12 months time. Oh! sorry, I was only joking: she is busy working on BRINO (Brexit in name only) and along with the fishermen and other people, she's working to stuff us traders also.

It would also appear that the "consultation" was just an exercise in procedure by civil servants – like they always are. You wonder why you took the bother to make the case. As always though, it won't put a stop to the successful trader - it's just another irritation that we have to cope with - there's always something to keep you on your toes with trading.

Of course, if we were French we would just nod politely and ignore these regulations for the next 12 months.

 

[NVP]

Sorry I never got involved in the discussions ....I know I should have fought alongside,you all but I knew how,this was going to pan out and had other stuff on my plate

My opinions on nanny state and interventions from big brother on so many things we value are frankly unprintable these days .....I have to step back to keep the blood pressure down ...hahahahaha

Let’s see how it goes now ......hang in there gang

N

 

[counter_violent]

Sorry I never got involved in the discussions ....I know I should have fought alongside,you all but I knew how,this was going to pan out and had other stuff on my plate

My opinions on nanny state and interventions from big brother on so many things we value are frankly unprintable these days .....I have to step back to keep the blood pressure down ...hahahahaha

Let’s see how it goes now ......hang in there gang

N

Conflicted much!

On another thread you advocate membership of the EU is good for us. Extra layer of govt parasites telling everyone else what to do.

 

[Splitlink]

Conflicted much!

On another thread you advocate membership of the EU is good for us. Extra layer of govt parasites telling everyone else what to do.

You can bray on about Brussels all you want. If you think that, whoever is in charge in the UK, is going to go back on whatever is agreed with EU before actual exit, think again. It won't happen. UK has a lot of addicted gamblers and is worrying many people in the UK. This rule can be blamed on Brussels, as you appear to be doing, but it won't be reversed.

 

[NVP]

Conflicted much!

On another thread you advocate membership of the EU is good for us. Extra layer of govt parasites telling everyone else what to do.

Fair comment ....:whistling

I wanted to stay in Europe for personal reasons ....firstly my career in finance has always involved contracts and employment with larger pan European companys and I wanted to ensure I had no restrictions for travel and temporary residence in the coming years .....I also was looking to buy property in the canaries for semi retirement purposes .....so Brexit has kyboshed my plans

Aside from that I like Europe and the multi faceted cultural tapestry it provides that is essential for civilised populations to grow and thrive

Insular civilisations with barriers and restrictions to neighbours are not on balance healthy scenarios ....look at the US.....having worked there and with many friends it’s frightening how their culture is regarding exposure to the rest of the world .....and trump hasn’t exactly helped !

The ESMA decision has been a real pain in the **** as I need to be depositing much higher levels of capital if I want to continue trading ......and I fundamentally will not deposit tens of thousands of dollars anymore with brokers ...

So I am pissed off ......I wanted my cake in Europe and to eat it .....and I’ve got neither

I don’t think the uk will revoke these rules when it leaves Europe .....if Teresa may did it would make the uk the spreadbettjng Capital,of the world

Interesting times

N

 

[TheRegulator]

Fair comment ....:whistling

I wanted to stay in Europe for personal reasons ....firstly my career in finance has always involved contracts and employment with larger pan European companys and I wanted to ensure I had no restrictions for travel and temporary residence in the coming years .....I also was looking to buy property in the canaries for semi retirement purposes .....so Brexit has kyboshed my plans

Aside from that I like Europe and the multi faceted cultural tapestry it provides that is essential for civilised populations to grow and thrive

Insular civilisations with barriers and restrictions to neighbours are not on balance healthy scenarios ....look at the US.....having worked there and with many friends it’s frightening how their culture is regarding exposure to the rest of the world .....and trump hasn’t exactly helped !

The ESMA decision has been a real pain in the **** as I need to be depositing much higher levels of capital if I want to continue trading ......and I fundamentally will not deposit tens of thousands of dollars anymore with brokers ...

So I am pissed off ......I wanted my cake in Europe and to eat it .....and I’ve got neither

I don’t think the uk will revoke these rules when it leaves Europe .....if Teresa may did it would make the uk the spreadbettjng Capital,of the world

Interesting times

N

Did any one trade countdowns or sprint product with their spread bet company. And are you entitled for a full refund on those products from the SB company does anyone know????

 

[mpups]

Did any one trade countdowns or sprint product with their spread bet company. And are you entitled for a full refund on those products from the SB company does anyone know????

 

[TheRegulator]

Why not entitled for refund ? I wouldn't be the only person whos traded binary sprint or countdown markets right? EMSA banned it cause their no protection for the retail trader.

If i switch to professional status, then i can enjoy all the full benefits before. max leverage, low margins etc. although, ill be liable for any negative balances.

 

[mpups]

Why not entitled for refund ? I wouldn't be the only person whos traded binary sprint or countdown markets right? EMSA banned it cause their no protection for the retail trader.

If i switch to professional status, then i can enjoy all the full benefits before. max leverage, low margins etc. although, ill be liable for any negative balances.

ahh they didn't say there is NO protection, they said :

"...there exists a significant investor protection concern in relation to CFDs and binary options offered to retail investors. This is due to their complexity and lack of transparency; the particular features of CFDs – excessive leverage – and binary options - structural expected negative return and embedded conflict of interest between providers and their clients; the disparity between the expected return and the risk of loss; and issues related to their marketing and distribution."

"...The agreed measures ESMA is announcing today will guarantee greater investor protection.."

 

[NVP]

Did any one trade countdowns or sprint product with their spread bet company. And are you entitled for a full refund on those products from the SB company does anyone know????

no idea ...sorry

 

[koteltrader]

For any retail clients considering moving their account(s) to Australia - and I see there was some discussion of this upthread - a few things to bear in mind.

The Australian Securities & Investment Commission (ASIC), which regulates CFDs there, has been closely watching the ESMA announcements.

While any policy changes have yet to be announced, a possible outcome is that ASIC requires brokers to apply ESMA rules to all accounts of EU residents. Or it could propose to adopt similar changes to those about to be rolled out across the EU. All speculation at the moment, though these two points are from the mouth of an Aussie broker, who you'd expect to be reasonably well informed about any proposals under consideration.

Worth keeping an eye on the ASIC site.

Also, do look carefully at the close out rules used by each Aussie broker. For example, IC Markets will auto close positions, beginning with the largest loss first and so on, if your available account balance falls below 50%. Once the balance is back > 50%, no further positions are auto closed unless it again dips below.

The latter point won't affect those who sensibly keep their available balance at many multiples over what's needed.

 

[swissy]

Unless you are resident in Australia and part of the tax system it would be highly unlikely that an Aussie broker will open an account....even if you are with the same broker in U.K., Different regulatory and tax systems.