Industry Warning: Is your Brokerage Compliant? New ESMA rules to take effect on August 1

An industry-wide legislation set forth by the European Securities and Markets Authorities (ESMA) has called for a temporary restriction of the...

An industry-wide legislation set forth by the European Securities and Markets Authorities (ESMA) has called for a temporary restriction of the marketing, distribution or sale of contracts for differences (CFDs) to retail clients. The new measures which will take effect on August 1st 2018 will consist of:

  • leverage restrictions according to asset type
  • margin close-out rules
  • negative balance protection
  • a limit of CFD marketing

PLG Dynamic Leverage Plugin to Meet all Requirements

In efforts to comply with ESMA’s product intervention measures on CFDs, Plugit Apps have developed a pioneering and sophisticated plugin targeted for MetaTrader 4 users. Titled the ‘Dynamic Leverage’, this add-on helps minimize investors’ risk and control their exposure via predefined parameters and leverage settings.

Designed specifically to meet regulations, the platform plugin will automatically adjust leverage according to the client symbol exposure, all the while ensuring to meet the ESMA leverage restrictions which range from 1:30 to 1:2.

Key features:

  • Multiple Profiles
  • Works on Forex, Futures and CFDs
  • Unlimited Margin Tiers
  • Dynamically Calculates and Changes the margin according to the margin tiers, where the tiers can be in lots or nominal value
  • Sets different margins on the same symbol, based on a parameter inside our profile called Unaltered OP
  • Sets an exposure limit either on NOP (Net Open Positions) symbol level or NOP account level, similarly per lot or per nominal value.
  • Manages Leverage and Margin in the event of hedged trades (Net, Total or Largest Direction exposure)

Time to Abide by ESMA’s Requirements

The clock is ticking and it’s time to take a step towards greater investor protection. Comply by ESMA’s latest measures by adding Plugit Dynamic Leverage plugin to your MT4 trading platform. Promoting responsible trading, Plugit’s add-on is the easiest and most convenient way to make sure you’re meeting ESMA regulations.