The Polish Monetary Supervision Authority, popularly often called KNF, is conducting a survey to collect suggestions on the merchants’ sentiments with the efficiency of the brokers and the provided providers.
“The impression of product intervention within the case of CFDs on the home market of those derivatives was topic to fixed monitoring as a way to assess the consequences of the launched restriction,” the KNF famous.
Out of the 15 questions on the survey, essentially the most highlighted one is the regulator’s curiosity in recognized merchants’ opinions on the upper leverages provided by the regionally regulated brokers.
“Have you ever began investing or have you ever returned to investing in CFDs with a Polish dealer on account of the rise in leverage on some underlying belongings that occurred from August 2, 2019?” the survey questioned.
Defying the EU Rules
Regardless of the restrictions by the European Securities and Markets Authority (ESMA) on the leverages provided by the European brokers, the KNF defied the framework and allowed regionally regulated brokers, providing as much as 100:1 leverage on spinoff some belongings.
The KNF additional requested the merchants if their ‘CFD buying and selling efficiency’ improved or deteriorated with the upper leverage provided by the Polish brokers following the ESMA curb.
Moreover, the regulator enquired if the merchants nonetheless proceed to commerce on “brokers exterior the European Union.”
“In case you are presently investing in CFDs via a dealer from the European Union (together with Polish), are you contemplating opening an account with a dealer/brokers from exterior the European Union?” the regulator requested.
The merchants can take part within the survey all through December, and the inputs shall be gathered anonymously.
Although native regulators, like KNF, try to lure merchants with larger leverages, main watchdogs are in favor of lowering dangers. Just like ESMA’s framework, Australia’s ASIC goes to impose related restrictions on the leverage of retail spinoff merchandise.