Canadian Regulator Accepts ESMA Requirements
Following an agreement with the ESMA Directive, Canadian regulator IIROC made adjustments to the rules of the forex companies. The regulatory framework for the work of brokers’ clients with contracts for price differences has been developed.The new document implies rules for the modernization of derivatives. The issue, in particular, relates to margin requirements, if to take into account the limitation of leverage on CFD products, which has already been launched in Europe and is actively practised at present.
The concept of “institutional client” has been revised. Today, this category can include a retail client, as well as an individual entrepreneur. This client must have relevant experience in trading in the foreign exchange market, namely, to have a certain amount of capital. For individuals, it is $ 5 million, while for a legal entity, capital is at least $ 25 million.IIROC urges brokers to get across to potential customers the risks that arise when working on financial markets.