⚡ KNF Keeps CFD Review Open as XTB Shares Fall Nearly 7%

The Polish Financial Supervision Authority confirmed Monday its ongoing review of contracts for difference offerings has no public timetable or defined measures, sending XTB shares tumbling nearly seven percent over two sessions. XTB closed down four percent Monday and dropped another three percent by Tuesday morning, underperforming Warsaw’s WIG20 index by over five percentage points.

The regulatory scrutiny strikes at XTB’s revenue core. Chief Executive Omar Arnaout disclosed in February that CFDs generate approximately ninety-five percent of the broker’s revenue, though the firm aims to reduce that concentration to seventy percent through spot crypto and equity products.

KNF’s review, which began publicly in May, examines how domestic and cross-border firms test client knowledge and restrict access to high-risk instruments. This follows a five-point-five million dollar penalty imposed on XTB in March for deficient client assessments and misleading risk presentations during twenty-twenty-two and twenty-twenty-three. XTB has appealed that fine.

FXnCO Insight

CFD-dependent brokers operating in or targeting Poland face material revenue risk until KNF publishes concrete regulatory parameters and compliance timelines.

Source: Finance Magnates