Spain’s securities regulator CNMV has instructed Cyprus-licensed brokers to treat spot-quoted futures and perpetual futures as contracts for difference when offered to Spanish retail clients, according to a circular issued by CySEC. The clarification brings these products under Spain’s existing retail CFD framework, including maximum leverage of 2:1 for crypto instruments, retail advertising prohibitions introduced in July 2023, and other product intervention measures first imposed in 2019.
The notice expands upon CySEC’s October 2023 guidance by explicitly naming perpetual futures and similar instruments as falling within CFD classification, regardless of commercial branding. This position aligns with ESMA’s February statement confirming that perpetual futures meeting CFD characteristics must comply with EU-wide intervention rules based on economic substance rather than nomenclature. The issue has been under industry discussion since a Cyprus firm sought ESMA’s clarification earlier in 2025.
While spot-quoted futures originated as exchange-traded products launched by CME Group in mid-2025 under US CFTC oversight, Spain’s enforcement focus targets over-the-counter versions marketed by retail brokers. For Cyprus firms relying heavily on passporting rights into the Spanish market, this development represents both regulatory alignment and an enforcement signal. The absence of implementation deadlines or new reporting obligations suggests CNMV identified active distribution of these rebranded products and moved to close a potential regulatory gap.
FXnCO Insight
Brokers marketing futures-labeled products to Spanish retail clients should immediately review product classifications and marketing materials, as substance will trump labelling in any enforcement assessment.
Source: Finance Magnates