Spain’s securities regulator CNMV is clamping down on spot-quoted futures and perpetual futures marketed to retail traders, demanding Cyprus-licensed brokers treat these products as contracts for difference under full CFD restrictions. The directive, relayed Wednesday through CySEC, subjects these futures-labeled instruments to Spain’s strict leverage caps, advertising bans, and retail protection measures introduced in 2019 and expanded in July 2023.
The move follows a February statement from ESMA clarifying that perpetual futures meeting CFD definitions fall under EU intervention measures regardless of branding. For retail crypto traders, this means maximum 2:1 leverage, drastically below the high multiples commonly advertised by crypto platforms. The notice carries no implementation deadline but explicitly names SQFs, perpetual futures, and similar analogue products, broadening language from previous October 2023 guidance.
Cyprus brokers, who heavily passport into Spanish markets, should view this as enforcement intent rather than new regulation. The CNMV’s request signals these rebranded products are actively circulating across borders.
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FXnCO Insight
** Brokers offering futures-labeled products to Spanish retail clients must immediately audit product classifications and prepare for CFD-level compliance or risk regulatory action from Madrid.
Source: Finance Magnates