FESE note on NCA product interventions on leveraged products

FESE fully shares the objective of safeguarding investor protection and agrees that some product intervention measures both at European and national levels might occasionally be necessary for specific products. However:

• It is crucial to keep access to regulated capital markets open to retail investors. FESE encourages NCAs to take into consideration the trading circumstances and the regulated environment in which a specific product trades when adopting a decision.
• OTC products do not function and do not have the same characteristics and protection measures as exchange-traded products, such as ETDs. Product interventions should differentiate between the two.
• Regulators should give entities sufficient time and guidance to implement product interventions.

FESE suggests that policymakers and authorities establish a streamlined sequence of measures for ETDs that would render outright prohibitions as a means of last resort only.