Ireland is set to follow the UK, Germany and France by clamping down on the retail forex and contract for difference (CFD) markets.
The Central Bank of Ireland (CBI) has issued a consultation paper that is focusing on the issues related to financial trading products for retail investors.
According to the Financial Times, the bank is looking for market feedback as it prepares to tackle what it considers to be a market failing to protect retail clients from suffering major losses.
The CBI said it was considering an outright ban on the products, or the introduction of measures to curb trading.
A CBI study found that clients that deposited real money to trade FX and CFDs lost about €6,900 ($7,300) per person on average. Around 75% of clients have lost money in each of the last four years.
Measures proposed by the CBI are consistent with other European regulators like the French AMF, German BaFIN, and the UK’s Financial Conduct Authority (FCA).
Related article: UK FCA proposes tighter rules for CFD products
