CMC Markets launches pro platform in response to European spreadbetting clampdown
CMC Markets, one of the world’s biggest financial trading platforms, today launched a new account which it hopes will allow many of its customers to circumvent a controversial clampdown by European regulators.
The European Securities and Markets Authority (ESMA) is expected to implement restrictions in the coming days – more than a year since UK regulators first unveiled their own plans.
Included in the crackdown are plans to cap leverage limits for retail clients. Traders using products such as contracts for differences can currently expose themselves to a downside which is many times their original investment.
Larger platforms such as CMC and IG have argued most of their clients are sufficiently sophisticated to be aware of the risks they face and should not be subject to rules limiting their trading.
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Launched today, CMC Pro is a platform designed for professional clients to continue using their current leverage rates. Traders must fulfil three key criteria: a portfolio of at least €500,000 (£439,000); have made at least 10 trades a quarter over the last 12 months; and, need to work or have worked in the financial sector for at least one year.
“Over the last 10 years, we have seen tremendous changes in our industry, driven by technology and social media. It is right that regulators are now looking to protect less experienced and potentially vulnerable clients,” said CMC group commercial director David Fineberg.
At CMC Markets we already cater for a professional client base, and we are continuously looking to innovate our service and offer ways to empower our clients and provide a premium experience.
CMC declined to comment on what proportion of its clients will be able to apply for its professional-style account.
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