Trading giant Plus500, who in October started operating in accordance with proposed changes by the Financial Conduct Authority (FCA) said that the announcement on Friday by the FCA regarding changes to regulation in the UK will not have any effect on them, as they had already anticipated the regulatory changes.
Plus500 who offers customers over 2,200 financial instruments of CFDs to trade, has already adopted the proposed rules after the ESMA announced the crackdown in August of this year.
The FCA said on Friday that they were looking to introduce making product intervention measures permanent with many of the European Securities and Markets Authority’s. As part of the rules, it has put caps on leveraged trading that will stay in effect for a period of 3 months, after which it will need to be renewed by the ESMA, citing customer protection.
The cap on leverage will depend on the asset class ranging from between 2:1 to 30:1. As part of the law, binary options will be banned.
Plus500 does not offer binary options, so they will not be affected by this proposed intervention.
The announcement by the FCA did not come as a surprise to the industry, as almost everyone expected the local authorities to make the rules permanent.
What’s more …………
Plus500 does not see this new measure impacting in any way in their revenue, as they said before ‘they are well placed to ride out any volatility in financial markets’, in spite of the regulatory changes.
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