XTB, a
Warsaw-based forex and contracts for difference (CFD) broker has said that the Spanish securities
regulator’s expanded restrictions on the marketing, distribution and sales of
CFD instruments have had a “minor” impact on its operations. The Polish broker
noted that it has not seen “any significant changes” in its rate of customer
acquisition as a result of the new rules.
In July,
the Spanish regulator, the National Securities Market Commission (CNMV),
disclosed that it expects its two-part additional
rules to further
limit the marketing of CFDs to income into effect on July 20, 2023. The
watchdog explained that the
extra rules became necessary as approximately 75% of retail investors still
suffer losses on their CFD investments despite previous restrictions.
As a
result, the new restrictions ban marketing practices aimed at retail clients or
the general public. This includes the use of sales agents, call centres or
software providers to recruit investors, Finance Magnates reported.
Furthermore,
the restrictions sought greater investor protection by requiring providers of
certain “leverage products” such as futures and options, to close one or more
of a retail client’s open positions when the value of the positions is reduced
to half of the initial margin, among other measures.
XTB Says
It’s Business as Usual
However,
XTB in a
note to its investors, welcomed the new rules, noting
that they “will help clean the local market of unfair practices that negatively
affected the image of the entire industry.” In
addition, the broker believes that the new rules will help to further strengthen its market position in Spain
as the product offerings of its competitors are limited.
“We have
not conducted advertising activities related to CFDs in Spain for almost two
years; hence, the impact of the new regulation on XTB’s operating activities is
assessed as minor,” XTB explained. “In recent years, our marketing
activities in this market have focused primarily on the promotion of the stock
offer and educational activities.”
Nonetheless, XTB said
it has already
made certain changes to
its websites, social media activities, principles of cooperation with partners,
and payment methods offered to customers, in line with the additional rules.
Meanwhile, the Polish
broker noted that its marketing strategy for the Spanish market “will not change significantly.” “At
the beginning of 2024, we are planning a large advertising campaign related to
our new concept of communication with clients,” XTB added.
ThinkMarkets adds Taiwanese index; Bitget mandates KYC; read today’s news nuggets.
XTB, a
Warsaw-based forex and contracts for difference (CFD) broker has said that the Spanish securities
regulator’s expanded restrictions on the marketing, distribution and sales of
CFD instruments have had a “minor” impact on its operations. The Polish broker
noted that it has not seen “any significant changes” in its rate of customer
acquisition as a result of the new rules.
In July,
the Spanish regulator, the National Securities Market Commission (CNMV),
disclosed that it expects its two-part additional
rules to further
limit the marketing of CFDs to income into effect on July 20, 2023. The
watchdog explained that the
extra rules became necessary as approximately 75% of retail investors still
suffer losses on their CFD investments despite previous restrictions.
As a
result, the new restrictions ban marketing practices aimed at retail clients or
the general public. This includes the use of sales agents, call centres or
software providers to recruit investors, Finance Magnates reported.
Furthermore,
the restrictions sought greater investor protection by requiring providers of
certain “leverage products” such as futures and options, to close one or more
of a retail client’s open positions when the value of the positions is reduced
to half of the initial margin, among other measures.
XTB Says
It’s Business as Usual
However,
XTB in a
note to its investors, welcomed the new rules, noting
that they “will help clean the local market of unfair practices that negatively
affected the image of the entire industry.” In
addition, the broker believes that the new rules will help to further strengthen its market position in Spain
as the product offerings of its competitors are limited.
“We have
not conducted advertising activities related to CFDs in Spain for almost two
years; hence, the impact of the new regulation on XTB’s operating activities is
assessed as minor,” XTB explained. “In recent years, our marketing
activities in this market have focused primarily on the promotion of the stock
offer and educational activities.”
Nonetheless, XTB said
it has already
made certain changes to
its websites, social media activities, principles of cooperation with partners,
and payment methods offered to customers, in line with the additional rules.
Meanwhile, the Polish
broker noted that its marketing strategy for the Spanish market “will not change significantly.” “At
the beginning of 2024, we are planning a large advertising campaign related to
our new concept of communication with clients,” XTB added.
ThinkMarkets adds Taiwanese index; Bitget mandates KYC; read today’s news nuggets.
