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.