ESMA_QA_1979

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1979

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Regulatory Context

Regulation : MIFIR

Level 1 Regulation: Markets in Financial Instruments Regulation (MiFIR) Regulation (EU) No 600/2014 - Investor Protection and Intermediaries

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Product intervention

Subject Matter: Payments

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Question

Submission Date: 09 November 2018

What is considered “payments for the purpose of entering into a CFD”?

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ESMA Answer

Answer Date: 09-11-2018

[ESMA 35-36-1262 Q&As on product intervention Q&A nr 5.2] The definition of initial margin in the CFD Decision refers to payments for the purpose of entering into a CFD, excluding commission, transaction fees, and any other related costs. Payment for the purpose of entering into a CFD is limited to cash. “Payments“ do not include firms crediting cash to the client’s account based on collateralised cash from other assets, held by the retail client being used as collateral, whether such assets are within or separate to the CFD trading account.

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This document was automatically extracted from the ESMA EMIR Q&A database.