Restrict CFD leverage offered to retail clients to a maximum ratio
| Category | Instrument | Current leverage | Effective from 29 March 2021 |
|---|---|---|---|
| Major currency pair | Any two of the Australian dollar, British pound, Canadian dollar, Euro, Japanese yen, Swiss franc and US dollar; | 50:1 | 30:1 |
| Minor currency pair | Any currency pair that is not a major currency pair; | 50:1 | 20:1 |
| Major stock market index | CAC 40, DAX, Dow Jones Industrial Average, EURO STOXX 50 Index, FTSE 100, NASDAQ-100 Index, NASDAQ Composite Index, Nikkei Stock Average, S&P 500 and S&P/ASX 200; | 40:1 | 20:1 |
| Minor stock market index | Any stock market index that is not a major stock market index. | 40:1 | 10:1 |
| Single stock | CFD on single stock | 10:1 | 5:1 |
| Commodity | Metal - Gold | 25:1 | 20:1 |
| Commodity | Commodity CFDs except Gold | 25:1 | 10:1 |
Standardise CFD issuers’ margin close-out arrangements that act as a circuit breaker to close-out one or more a retail client’s CFD positions before all or most of the client’s investment is lost.
Protect against negative account balances by limiting a retail client’s CFD losses to the funds in their CFD trading account.
Prohibit giving or offering certain inducements to retail clients.