Admiral Markets, a leading retail foreign exchange brokerage group, has introduced a new account compliant with the French CFD regulatory requirements. Admiral.RisqueLimité is designed to protect retail clients from risks connected to trading in the financial markets.
Admiral Markets UK Ltd, the company’s FCA regulated subsidiary, provides the offering for the French retail trading market with its MiFID passport rights. The account features mandatory Stop Loss, limited maximum leverage, negative balance protection, 100% stop out level and additional protection against price slippage, and volatility protection settings.
The French financial watchdog Autorité des Marchés Financiers (AMF) has required retail brokers to include an option of a mandatory Stop Loss order. Admiral Markets introduced a Stop Loss order calculated and placed automatically whenever a client opens a position. SLs on this account cannot be canceled or moved away too far from the opening price so that any resulting loss never exceeds the maximum value determined by the value of margin collateral for the position. This is meant to go in line with the requirement that any losses resulting from trading may not exceed the monetary value of the margin reserved for a particular position.
Regarding limited maximum leverage, ESMA recommended changes in order to reduce the risks connected to margin trading. Leverage rates provided on this account already reflect the ones proposed by the regulator, including 1:30 on major currency pairs and 1:20 on other FX instruments; 1:20 on gold spot CFD and CFDs on major stock indices.
Admiral.RisqueLimité fully compensates negative balances, which complies with regulatory requirements, and provides stop out levels equal to 100% of the reserved margin collateral. Additionally, the AMF-compliant account provides an extra layer of protection with Admiral Markets’ Volatility Protection settings: a set of conditional orders aimed to address typical issues connected to market volatility.
The European Securities and Markets Authority (ESMA) has received a flood of responses, from brokers and retail investors, in an attempt to dissuade European financial watchdogs from putting the rules into effect.