ESMA Regulations Q&A

In a word, yes. ESMA, the European Securities and Markets Authority, is a financial regulatory institution of the European Union. As EBH is based and regulated in the European Union, trading with us is regulated by ESMA’s decision.

The most noticeable aspect of ESMA’s decision is the reduction in the amount of leverage we can offer our clients. New leverage limitations will be:

• Major currency pairs – up to 1:30
• Non-major currency pairs, gold and major indices – up to 1:20
• Commodities other than gold and non-major equity indices – up to 1:10
• Individual equities – up to 1:5
• Cryptocurrencies – up to 1:2

We will apply lower leverage, as per ESMA’s decision, from 1st August 2018

These restrictions will be applied on a temporary basis, for a period of 3 months. The temporary period will enable ESMA to gauge the market reaction to the restrictions and may influence their decision to prolong the restrictions when the period ends.

On September 28, 2018, ESMA has agreed to renew the restriction on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients, in effect since 1 August, from 1 November 2018 for a further three-month period.

On December 19, 2018, ESMA has agreed to renew the restriction on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients, in effect since 1 August, from 1 February 2019 for a further three-month period.

On 27 March, 2019, ESMA agreed to renew the restriction on the marketing, distribution and sale of Contracts for Difference (CFDs) to retail clients, in effect since 1 August 2018, as of 1 May 2019 for a further three-month period.

On 31 July, 2019, ESMA decided that it will not renew the temporary restriction on the marketing, distribution and sale of Contracts for Difference (CFDs) to retail clients in the European Union (EU) since most national competent authorities (NCAs) have taken permanent national product intervention measures relating to Contracts for Difference that are at least as stringent as ESMA’s measures. ESMA will continue to monitor activities in relation to these, and other related speculative products, to determine whether any other EU-wide measures may be needed.

On 30 July, 2019, the FSC (Financial Supervision Commission) decided to introduce permanent measures on the restriction of marketing, distribution and sale of Contracts for Difference (CFDs) to retail clients, as of 2 August, 2019.

There will be a new Margin Stop out level of 50% (previously 80%). If your margin falls below 50%, EBH will close your position automatically.