ESMA · ESMA_QA_1980 Answer Published
Margin close-out protection
- 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
- 2018-06-01
- Answered
- 2018-06-01
Question
What is considered to be the ‘sum of funds in the CFD trading account’ and the “unrealised net profits of all open CFDs connected to that account’ for the purposes of margin close-out protection?
Answer
[ESMA 35-36-1262 Q&As on product intervention, Q&A 5.3] The sum of funds in the CFD trading account means any cash credited to the client’s relevant CFD trading account and cash only. No other type of asset (e.g. other financial instruments) within or separate to the CFD trading account may be taken into account. The unrealised net profits of all open CFDs connected to that account means the sum of unrealised gains and losses of all open CFD positions recorded in the relevant 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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