IG warns of new CFD trading rules in Japan

22nd Oct 2009 09:41

Spread betting firm IG Group has alerted the market to possible regulatory changes in Japan relating to contracts for difference (CFDs).The Financial Services Agency in Japan (FSAJ) has announced a public consultation period running to 16 November 2009 on its proposals to restrict gearing on CFDs over certain asset classes.The proposals seek to limit gearing to a multiple of 5 for shares, 10 for equity indices and 50 for bonds. CFDs on commodities, precious metals or binary options are not covered by the new proposals which are due to be implemented in late 2010.IG, which said around 0.5% of its total revenues in September derived from the products covered by the FSAJ's proposals, will lobby the FSAJ directly and through 'industry channels', the company said.