What are ESMA’s new requirements?

ESMA’s new requirements consist of reducing available leverage limitations for Retail clients of financial organizations. New limitations depend on the volatility of an underlying asset and are the following:

Major Currency pairs - up to 1:30.
Non-major Currency pairs, Gold, major Indices - up to 1:20.
Commodities, other than Gold, non-major Indices - up to 1:10.
Other individual assets - up to 1:5.
Cryptocurrencies - up to 1:2.

Apart from the changes of the leverage limitations, financial organizations will be obliged to provide on a per account basis Margin Call and Stop Our features, on a per account basis Negative balance protection, and implement the standardized risk warning.