Publication of CSSF Regulation N° 19-06 on contracts for differences
Press release 19/26
The CSSF adopted today CSSF Regulation N° 19-06 of 26 June 2019 that restricts under certain conditions all firms acting in or from Luxembourg to market, distribute or sell contracts for differences (CFDs) to retail clients from 1 August 2019.
The CSSF’s rules are in substance the same as the European Securities and Markets Authority’s (ESMA) existing EUwide temporary restrictions on CFDs.
The CSSF confirms that all conditions under article 42 paragraph 2 of Regulation (EU) n° 600/2014 on markets in financial instruments are fulfilled. In particular, the CSSF shares the reasoning provided in ESMA’s measure on the existence of a significant investor protection concerns.
ESMA’s opinion on the proposed product intervention measures relating to CFDs provides further details on the measures contained in the CSSF Regulation 19-06.
The CSSF’s rules are permanent and come into force on the 1st of August 2019.