CySEC Tightens CFD Rules for Retail Clients, Limiting Leverage on Certain Contracts

CySEC Caps CFD Leverage at 10:1 for Non-Major Commodities and Indices

What Did CySEC Change? The Cyprus Securities and Exchange Commission (CySEC) has amended its rulebook for contracts for difference (CFDs), clarifying leverage requirements for retail investors. In a notice published September 5 in the Official Gazette, the regulator updated Directive DI87-09 to specify that retail clients trading CFDs on commodities or non-major stock indices must post margin equal to 10% of the contract’s notional value—effecti…

CySEC Tightens CFD Rules for Retail Clients, Limiting Leverage on Certain Contracts

The Cyprus Securities and Exchange Commission has issued an amending directive restricting the marketing, distribution, and sale of contracts for difference to retail clients. The update revises the existing rules on CFDs to retail investors.Under the amendment, a 10% notional value cap has been introduced for CFDs on certain previously unlisted commodities and stock indices, limiting the leverage retail investors can take. The directive takes e…