Forex glossary
ESMA regulation
Scope: EU / Poland
ESMA is the European Securities and Markets Authority. Its temporary 2018 CFD interventions included margin and retail-client protections; subsequent national decisions require separate checks. ESMA is not a broker-brand license, and national variations and client classification affect applicable rules.
Illustrative example
How does it work in practice?
In an example CFD offer check, you read ESMA's 2018 announcement and separately Poland's KNF decision from 2019. The historical EU announcement is not a complete description of the current terms of a particular account.
A case to work through
Document date and scope
Model: an offer links only to ESMA’s 2018 intervention without naming its current entity or applicable national measure.
- Record the historical document’s date and scope.
- Identify the entity, client class and currently applicable national measures.
What follows? Do not treat a historical link as a complete account description.
Example boundary: This exercise does not establish current rules in every EU state.
A useful distinction
ESMA regulation / FCA Regulation
FCA is a UK regulator; ESMA documents concern EU frameworks rather than a global license.
Check your understanding
Distinguish a historical document from specific account rules.
Show the answer and explanation
No, applicable current entity-specific rules are needed
Date, jurisdiction and client class matter.
Entity, obligations and client protection
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Read the fuller explanation
Related terms
Sources and documentation
- ESMA Decision (EU) 2018/1636: temporary retail CFD restrictions
The historical ESMA decision renewed a temporary retail-CFD restriction model that included account-based margin close-out protection.
- KNF Decision No. DAS.456.2.2019 of 1 August 2019
The Polish decision defines initial-margin and account-based close-out requirements for retail CFDs, with separate conditions for experienced retail clients.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.