In January 2017 the Autorité des Marchés Financiers (AMF), the French financial regulation authority
released a final amendment to its Monetary and Financial Code that states the parameters
in which marketing communications can be disseminated to retail clients and potential retail clients.
The code identifies three categories in which offering CFD trading is no longer permitted;
1) When the maximum risk is unknown by the trader
2) When the risk of loss is greater than the amount initially invested
3) When the risk of loss compared to the potential advantages is not reasonably understood.
In order to address these regulatory requirements brokers who are wishing to operate in France
must now provide a guaranteed stop loss on client positions and a negative balance protection.
This means that before a position is opened, clients will need to stipulate their stop loss and likewise,
during the course of their trade, clients will not be able to change the stop loss to allow for a wider variable.
To support the implementation of these regulation developments, Leverate has designed two new automatic
guaranteed stop loss features which ensure that traders will not lose more money than what they initially invested in their CFD trades.
The admin system now has settings that comply with the requirements of French traders.
This means that any broker with EU regulation can now provide trading services within French jurisdiction.
With the opportunity ripe as never before, make the most of your European regulation passport to enter the French market!