Key Insights
- Darwinex to stop offering CFDs to new Spanish retail clients and residents from July 31, 2024, in response to CNMV regulatory measures.
- Decision doesn’t affect existing CFD account holders, those who open accounts before the deadline, or clients categorized as professional.
MADRID (MarketsXplora) – Darwinex, a prominent online trading platform, announced on Thursday that it will cease offering Contract for Difference (CFD) trading to new Spanish clients and residents in Spain starting July 31, 2024, in response to regulatory measures implemented by Spain’s financial watchdog.
The decision comes in the wake of a resolution published by the Comisión Nacional del Mercado de Valores (CNMV) in July 2023, which introduced intervention measures for CFDs. Darwinex, whose business model heavily relies on CFDs and foreign exchange (FX) trading, stated that it cannot prevent its branding and distribution from reaching Spanish retail clients who may lack knowledge or experience in these complex financial instruments.
“Although this decision has been difficult, we firmly believe it is the only possible solution to scrupulously comply with the CNMV’s resolution,” Darwinex said in a statement to MarketsXplora.
The new policy will affect both traders and investors seeking to open new accounts for CFD trading. However, Darwinex clarified that the measure does not impact existing clients who meet certain conditions. These include current holders of real CFD accounts with Darwinex, either as traders or investors in DARWINs (Darwinex’s proprietary investment vehicles), those who complete the real account opening process before July 31, 2024, and clients categorized as professional by Darwinex.
As the July 2024 deadline approaches, Darwinex is expected to provide further guidance to its Spanish client base and potential new customers about alternative investment options that comply with the CNMV’s regulations.
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