LONDON (Reuters) - The European Union's markets watchdog has extended its temporary restrictions on selling "contracts for differences" or CFDs to retail customers, saying it was still concerned about investor protection.
"ESMA considers that a significant investor protection concern related to the offer of CFDs to retail clients continues to exist. It has therefore agreed to renew the restriction from 1 November," the EU watchdog said in a statement on Friday.
The decision renews for three months from November restrictions introduced in August on the marketing, distribution and sale of CFDs to retail customers.
CFDs are financial products that give investors exposure to price movements in securities without them having to own the underlying assets.
Trading firms like CMC Markets <CMCX.L> and IG <IGG.L> have come under pressure as ESMA tightens the noose on products like CFDs and "binary options".
(Reporting by Huw Jones; Editing by Mark Potter)