EU Watchdog to set Limits on CFDs and Cryptocurrencies

ESMA has declared leverage limits on the provision of contracts for CFDs and cryptocurrencies for retail investors in the EU
28 March 2018   246

The European Securities and Markets Authority (ESMA) announced these measures as temporary ones. The orders will be issued in the EU's official journal and come into force in one month for binary options and two months for CFDs.

The intervention measures for CFDs contain leverage restrictions on the opening of a CFD by a retail client from 30:1 to 2:1. The impact limits are: 30:1 for major currency pairs; 20:1 for non-major currency pairs, gold and major indices; 10:1 for commodities other than gold and non-major equity indices; 5:1 for individual equities and other reference values; and 2:1 for cryptocurrencies.

The other intervention measures include the following:

  • a margin implementation rule per account. It will ration the percentage of of margin at 50% of minimum initial required margin, demanding providers to close out 1 or more of a retail consumer`s open CFDs; 

  • the account basis protection from the negative balance. This will state a guaranteed limit on retail client losses;

  • the bound of the motivation suggested to trade SFDs;

  • a risk prevention comprising the percentage of losses on a CFD provider`s retail investor accounts, delivered in a normalized way.

So the market for financial instruments providing exposure for cryptocurrencies will be closely monitored. The application of leverage limits can also maximise the possibility of a larger gain. Automatic margin close-out makes a degree of defence for investors as it declines, though it does not exclude, the risk that the investor loses all or more than their initial margin.

ESMA has decided to will implement a 3-month ban on the marketing, distribution or sale of binary options to retail investors since the risks connected with the inherent features of binary options, such as an expected negative return and inherent conflicts of interest, make these products unsuitable for retail investors.

In contrast with the options that can serve a valuable role in hedging exposure to certain assets, binary options do not correspond any real investment needs for retail investors. These options can also attract compulsive gambling behaviour.

Zilliqa is holding a meetup in Singapore

High throughput blockchain platform Zilliqa is organizing a meetup session in Singapore on May 23 to share its progress and preview its new smart contract language Scilla
24 April 2018   26

A meetup titled "Zilliqa: Sharding in Action & Security by Design" by Zilliqa project will take place on May 23 at The Metro@ thebridge. Zilliqa is a new high-throughput public blockchain platform that can enable real-world applications considered impossible up to the moment. Zilliqa utilizes the idea of sharding to reach thousands of transactions per second without sacrificing security and decentralization.

The session will covering the so-far progress of the project, the partners joining the project and the preview of the new smart contract language Scilla that further improves on security for smart contracts. The event is going to be broadcasted love on YouTube. The agenda of the meetup is as follows

  • 18:45 - 19:00 Overview of the Zilliqa project
  • 19:00 - 19:20 Session with partners of Zilliqa
  • 19:20 - 19:50 Demo: Testnet & secure smart contracts with Scilla
  • 19:50 - 20:40 Networking

At the moment of publication, Zilliqa market parameters are as follows:

  • Average price $0.099018
  • Market cap $721,249,874
  • Volume (24H) $86,625,700