Several days after the pan-European financial system watchdog, theEuropean Securities and Markets Authority (ESMA), has published a document warning on the risks of trading in binaries, CFDs and other speculative financial instruments, such as spot rolling forex, the national regulators started doing the same.
Only on Friday Spain’s CNMV and the Malta Financial Services Authority (MFSA) issued similar circulars warning on the risks involving trading in binary options, CFDs and forex.
In essence, the CNMV retells the ESMA document and notes it shares the organization’s concerns with the adequate marketing of those products. It also said it was worried about the lack of competent supervision over the brokers offering such products, without being physically present in Spain.
On its part, the MFSA also relays the ESMA warning in brief and reminds investors to be very careful and vigilant when investing in binaries, CFDs and forex. The regulator also urges the public to make sure they invest only with duly authorized financial services providers and acquaint themselves with the risks of trading in such instruments.
MFSA’s warning also highlights ESMA’s ongoing work on common supervisory policies and their promotion across the EU.