ESMA · ESMA_QA_1979 Answer Published
Payments
- Regulation
- Markets in Financial Instruments Regulation (MiFIR) Regulation (EU) No 600/2014 - Investor Protection and Intermediaries
- Article
- ESMA Decision 2018/795; ESMA Decision 2019/796
- Topic
- Product intervention
- Submitted
- 2018-11-09
- Answered
- 2018-11-09
Question
What is considered “payments for the purpose of entering into a CFD”?
Answer
[ESMA 35-36-1262 Q&As on product intervention Q&A nr 5.2] The definition of initial margin in the CFD Decision refers to payments for the purpose of entering into a CFD, excluding commission, transaction fees, and any other related costs. Payment for the purpose of entering into a CFD is limited to cash. “Payments“ do not include firms crediting cash to the client’s account based on collateralised cash from other assets, held by the retail client being used as collateral, whether such assets are within or separate to the CFD trading account.
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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