2nd July 2008
APCIMS welcomes FSA’s disclosure for Contracts for Difference (CfDs)
APCIMS welcomes the FSA’s announcement today that they will require a general disclosure regime for long CfD positions.
APCIMS has raised this issue with a number of stakeholders and we are glad that our views are reflected in the judgement at which the FSA has arrived.
Commenting on the FSA’s announcement of a disclosure threshold of 3% for CfDs, David Bennett CEO of APCIMS said:
“We are wholly in favour of greater transparency in trading in CfDs so long as there is no detriment to the benefits of the CfD market. We believe the FSA has responded correctly to announce disclosure at 3%.
“It is important that investor confidence remains high and ensuring good governance will undoubtedly contribute to greater stability in the market.”
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Notes to editors:
Contracts for Differences (CfDs)
A CfD is an agreement between two parties to exchange the difference in value of a particular share between when the contract opens and when it closes. A position can be opened on margin, which is much cheaper than cash dealing, while the CfD does not confer share ownership so the final transaction at contract close is not subject to stamp duty. This option is obviously attractive, yet trading in CfDs is not subject to the same reporting requirements as cash equity trading.
APCIMS
APCIMS is the trade association of more than 220 firms who, on more than 400 sites across the UK and Ireland, deal in stocks and shares for private investors. Together our aim is to ensure that the regulatory, tax and other changes across Europe bring real benefits to the investment community.
More than 12 million people in the UK currently invest directly in stocks and shares to secure their financial futures.
For further information please call:
Dirk Paterson, Head of Communications, APCIMS
on 020 7247 7080
Mobile:07507 855 428
Email: dirkp@apcims.co.uk
David Bennett, Chief Executive, APCIMS
on 020 7247 7080
Mobile: 077689 50041
Email: davidb@apcims.co.uk