Support Board
Date/Time: Fri, 07 Mar 2025 01:04:46 +0000
Regarding FUTURES trading for german traders - new restriction from the government
View Count: 668
| [2022-02-21 09:10:32] |
| User426686 - Posts: 11 |
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* First, it's all bullshit, but they have no clue what they are talking about For my government "every loss in futures trading" = "additional payments obligations" = "very dangerous" = "we have to take care of our non professionals" = "cut them down" * US Brokers aren't targeted so far - but i'm afraid it's only a question of time * Brokers like "Stage 5 Trading" could use the new risk management features from teton to overcome this issue (no additional payments obligations, due to save margin calls) * it seems that a "Professional Status" is necessary to bypass this regulation * doesn't take affect to companies only to private trader Product intervention: BaFin seeks to better protect retail clients trading in futures Retail clients in Germany should be protected against losing all of their assets in highly volatile market situations when trading in futures. The Federal Financial Supervisory Authority (BaFin) is therefore planning to restrict the marketing, distribution and sale of futures with additional payments obligations. Retail clients will no longer be able to trade in these products. Contracts for difference (CFDs) with additional payments obligations were banned in 2017. In BaFin’s view, retail clients that trade in financial products involving an obligation to make additional payments are exposed to substantial risk. In highly volatile market situations, these products can result in unlimited losses. If the capital invested is not enough to offset losses, investors must use their other assets. Retail clients can lose significantly more than their invested capital; in the past, some investors have been required to make six-figure additional payments. After banning CFDs with additional payments obligations for retail clients, BaFin has noted that compa-nies are increasingly marketing futures with additional payments obligations to retail clients. In addition, an increasing number of mini and micro futures products with additional payments obligations are currently coming onto the market. Owing to their small contract size and corresponding low entry threshold, these products are aimed specifically at retail clients. With its product intervention measure, BaFin aims to ensure that, in future, the losses incurred by retail clients trading in futures contracts will be limited to the amount invested, as in the case of CFDs. BaFin can restrict or prohibit the marketing, distribution and sale of financial instruments in order to protect investors (Article 42 of the Markets in Financial Instruments Regulation – MiFIR). BaFin today published the draft of its product intervention measures. Comments on the measure may be submitted up to 17 March 2022. https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Pressemitteilung/2022/pm_2022_02_03_produktintervention_handel_mit_futures_en.html |
| [2022-02-22 07:49:11] |
| User426686 - Posts: 11 |
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Perhaps you want to get in contact with a german broker to find an solution. I've wrote "Birger Schäfermeier" (strong affiliate to WHSelfInvest) that he should take "Sierra Chart" into account when he talks with WHSelfInvest this week, due to strong technical leadership in terms of risk management and eurex connectivity. I've made a list with several points regarding a new cooperation with sierra chart.
Date Time Of Last Edit: 2022-02-22 07:50:11
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