Bafin toughens rules on CFDs

New directive for August 10 requires implementation of negative balance protection for CFD products in Germany

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Bafin acts: "Restriction of CFD trading is a necessary step to protect retail investors” – Elisabeth Roegele

Germany’s Federal Financial Supervisory Authority (Bafin) has announced it will restrict the marketing, distribution and sale of financial contracts for difference (CFDs) from August 10, in the latest example of a European regulator clamping down on certain retail products.

The restriction applies to CFD products offered and distributed in Germany, and it establishes that potential losses incurred by clients cannot exceed their account balance. The new rule will require providers to implement n