Online trading provider CMC Markets has responded to the recent announcement by the European Securities and Markets Authority (ESMA) that retail clients will no longer be able to use their current leverage levels, by creating a new CMC Pro account for eligible clients.
The ESMA changes establish margin limits for clients, rather than the broker-dealers and CMC says the new account will allow clients to continue to trade with their current leverage levels.
The firms says in addition, “CMC Pro clients will have their own account manager, priority access to new products and the ability to earn cash rebates and rewards. There will also be exclusive CMC Pro client events featuring guest speakers and charting analysis, and providing an opportunity for networking.”
To be eligible, clients will have to demonstrate that they are capable of making their own investment decisions and understand the risks involved, the firm says, in addition to meeting two of the three following criteria:
- They will need to have carried out transactions of a significant size on a relevant market (10 per quarter over the previous four quarters)
- They will need to have a financial instrument portfolio that exceeds €500,000
- They need to work, or have worked, in the financial sector for at least one year in a relevant professional position
“Over the last 10 years, we have seen tremendous changes in our industry, driven by technology and social media,” says David Fineberg, group commercial director at CMC Markets. “It is right that regulators are now looking to protect less experienced and potentially vulnerable clients. We are seeing a change in consumer behaviour as clients are now demanding a personal, tailored service to suit their individual needs.”