Plus500 “Not Impacted” By FCA’s Proposed CFD Restrictions

Retail trading giant Plus500 has responded to (FCA), saying it will not be affected by any changes to regulation that the British regulator makes.
Crushing any hopes of a new regulatory regime outside of the European Union, the FCA said on Friday that it is considering plans to make many of the European Securities and Markets Authority’s permanent.
Introduced in August, the product intervention measures, which put caps on leveraged trading, have to be renewed by ESMA every three months in order for them to stay in effect.
Citing customer protection, the FCA said that, if the laws are made permanent, it will ban binary options and put caps on leverage that will range from 2:1 to 30:1 depending on the asset class.
Plus500: already prepared
CMC Markets and IG Group, two of the retail industry’s biggest players, have responding to the FCA’s announcement. Both companies said that they had anticipated the regulatory changes and that they were already in accordance with the rules which the FCA proposed in its statement.
In a statement released via the London Stock Exchange news service, Plus500 said almost exactly the same thing. The broker noted that it has already adopted the proposed rules as they are akin to those that were imposed by ESMA back in August.
“The Company acknowledges the FCA announcement, noting it already operates in compliance with these proposed changes,” said Plus500. “It has never offered binary options and so is not impacted by this proposed intervention.”
The broker also said that it does not foresee any changes to its revenue outlook.
The industry response to the FCA’s proposed rule changes are unsurprising. As Finance Magnates , almost no one expected ESMA to not renew its product intervention measures. In fact, the opposite was true, with most expecting local authorities to make the rules, or similar rules, permanent.