ESMA Puts Perpetual Futures Inside CFD Perimeter: 2:1 Leverage for EU Retail
- —ESMA: marketing a contract as "perpetual" does not change its legal classification
- —Crypto CFD leverage for retail is capped at 2:1, with margin close-out at 50%
- —Negative balance protection and a standardized risk warning are required
- —HPC asks the Commission to treat perpetuals as MiFID II instruments without new legislation
Why it matters: The classification will determine the leverage available to EU retail traders and which venues can serve clients in the bloc.
Source: CryptoTicker