Response to BaFin Consultation Paper

RNS Number : 3860R

CMC Markets Plc

09 December 2016

 

9 December 2016

CMC MARKETS PLC

Response to BaFin Consultation Paper

CMC Markets plc ("CMC") notes yesterday's announcement by BaFin regarding the marketing, distribution and sale of CFD products to retail clients.

The BaFin consultation paper requires CFD providers to ensure that retail clients cannot lose more money than is deposited in their account, a functionality which is already available to CMC Markets clients in Germany. On the basis of the consultation paper, there are no other requirements from BaFin including no leverage limits, and where retail clients' risk is limited to their deposits, there is no prohibition on marketing, distribution and sale of CFDs.

We welcome this balanced approach from BaFin and will respond to the consultation in accordance with the proposed timeline of 20 January 2017.

CMC is the leading provider in Germany and has had the largest retail CFD market share, based on the latest independent Investment Trends research, since the start of the study in 2011.

Media enquiries

Camarco

Geoffrey Pelham-Lane/Ed Gascoigne-Pees/Jennifer Renwick Tel: [phone]

Notes to Editors

CMC Markets plc ("CMC"), whose shares are listed on the London Stock Exchange under the ticker CMCX, was established in 1989 and is now one of the world's leading online financial trading businesses. The company serves retail and institutional clients through regulated offices and branches in 14 countries, with a significant presence in the UK, Australia, Germany and Singapore. CMC Markets offers an award-winning, online and mobile trading platform, enabling clients to trade over 10,000 financial instruments across shares, indices, foreign currencies, commodities and treasuries through contracts for difference ("CFDs") and financial spread bets (in the UK and Ireland only). Clients can also place financial binary bets through Countdowns and, in Australia, access stockbroking services. More information is available at http://www.cmcmarkets.com/group/

 

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