ESMA_QA_1980

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1980

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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: Margin close-out protection

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Question

Submission Date: 01 June 2018

What is considered to be the ‘sum of funds in the CFD trading account’ and the “unrealised net profits of all open CFDs connected to that account’ for the purposes of margin close-out protection?

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ESMA Answer

Answer Date: 01-06-2018

[ESMA 35-36-1262 Q&As on product intervention, Q&A 5.3] The sum of funds in the CFD trading account means any cash credited to the client’s relevant CFD trading account and cash only. No other type of asset (e.g. other financial instruments) within or separate to the CFD trading account may be taken into account. The unrealised net profits of all open CFDs connected to that account means the sum of unrealised gains and losses of all open CFD positions recorded in the relevant account.

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