UK - FSA reveals CFD disclosure regime to take effect in June

Thu, Mar 5, 2009

The Financial Services Authority (FSA) in the UK has brought forward plans to make investors disclose positions based on derivatives in a bid to prevent the use of CFDs.

The new rules are the same as the requirements for anyone holding plain stock and represent a push for greater market transparency.

Shares and such financial instruments will have to be aggregated and disclosed once over the 3% threshold.

This will ensure that they are not used covertly to influence corporate governance and/or build up stakes in companies.

An exemption has also been put in place for CFD writers acting in a client-serving capacity, to prevent unnecessary disclosures to the market.

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