The Polish financial regulatory body KNF has begun conducting a survey regarding the possible reduction in maximum leverage allowed for conducting Contracts for Difference (CFD) trading in the country, according to Finance Magnates. One may recall that Poland rejected implementing such changes previously when the European Securities and Markets Authority (ESMA) provided a blanket intervention across Europe limiting leverage available to retail traders.
While the KNF did require brokers to change policies regarding the marketing and advertisement of trading products, it is only now acknowledging that further adherence to ESMA and MiFiR may be necessary. As such, the regulator has announced that it will collect feedback from market participants to gauge opinions and ultimately study the possible impacts of such an intervention.
Previously, the KNF issued an opinion that such intervention measures would possibly lead to traders abandoning their local online brokerages and moving to non-regulated offshore jurisdictions, which would present risks to client funds and accounts.
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