Breaking: CMC Updates Tech to Adhere to French AMF Advertising Ban

CMC Markets is launching a new limited risk account for trading CFDs in France, the company has shared in an official statement. The firm is aiming to comply with the regulatory changes in France after the beginning of enforcement of the Sapin 2 law, which is limiting the advertisement of most retail trading products.

The French financial regulator, Autorité des Marchés Financiers (AMF), announced that it will limit the product offerings of brokers that advertise their services in France. According to the guidance which the AMF issued earlier this year, only brokers that offer guaranteed stop loss execution and Negative Balance Negative Balance In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place Read this Term protection will be allowed to operate.

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In addition, brokers have to adapt their technology to prevent traders from moving their initial stop loss, which they are required to enter once they submit their market or entry order. For example, if a trader enters into a long EUR/USD position at 1.0550 and has a stop loss at 1.0520, the stop loss level will only be allowed to be moved to a higher level.

This action is aimed at limiting risks for traders that are falling into the trap of increasing their risk on a given position. The AMF has studied the retail market in detail for a period of 4 years with the outcomes showing that 90 percent of traders lose money over time.

Consolidation of Brokers in France Just Starting

CMC Markets is initially launching the product for its French clients in order to appease the demands of the AMF, but the offering could be extended to other countries.

Commenting on the new limited risk account offering, the Managing Director of CMC Markets France, Guilhem Tranchant, said: “The new account offering is part of our logical response to the implementation of the Sapin 2 law. Our main priority remains to be to serve to the best interests of our clients.”

CMC Markets has become the second broker in France to introduce the changes to its accounts in the country.

At present, IG Group and CMC Markets have introduced accounts that are specifically designed to accommodate the new regulatory framework in the country. The Sapin 2 law has prohibited the advertisement of Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and CFDs brokers if they don’t adhere to the specific requirements introduced by French authorities.

Brokers that wish to advertise their products in the country need to commit substantial financial resources to adapt their offering to the provisions of the law. For companies like CMC Markets and IG Group that are using their own proprietary platforms, the changes are much easier to implement than they are for firms that rely on white label solutions.