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Archive » September 2020 » Esma product intervention on the Cfd market: impacts for retail investors and for the industry

Esma product intervention on the Cfd market: impacts for retail investors and for the industry

Massimo Giorgini, Joshua Ogie Olowu
September 2020 - n. 9
Keywords: Esma, product intervention, contracts for difference
Jel codes: G15, K22

On January 2020, the MiFir Regulation provided national competent authorities with the ability to adopt restrictive measures aimed at limiting specific practices in terms of marketing, distribution and sales of financial instruments, providing as well Esma with the competence to coordinate and facilitate measures at national level in order to safeguard a regulatory level playing field. However, Esma depends on national competent authorities to implement permanent measures of product intervention via powers delegated by the article 42 of MiFir. This contribution aims to present the evolution of the regulatory framework, to highlight the impacts for distributors of specific financial instruments subject to product intervention, and to suggest potential developments in terms of policy.

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