ESMA’s new requirements consist of reducing the available leverage limitations for Retail clients of financial organisations. The 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.
According to ESMA's new requirements, apart from the changes relating to leverage limitations, financial organisations are obliged to provide Margin Call and Stop Out features on a per account basis, as well as Negative balance protection on a per account basis. They are also obliged to implement the standardised risk warning.