The temporary halt comes after it emerged the European Securities and Markets Authority (ESMA) is in discussions to introduce its own product intervention measures into the upcoming Markets in Financial Instrument Regulation (MiFIR).
The FCA has previously suggested new rules could include blanket risk warnings of CFD products and forcing firms to reveal the profit and loss rations on client accounts.
The clampdown follows warnings by the FCA that too many clients incurred “large and unexpected losses” after putting money into spread bets or rolling spot foreign exchange products.
However, any action by the regulator has been delayed until early 2018 or until the ESMA finalises its own discussions.
The ESMA proposals are broadly similar to the FCAs, but go a step further and could include guaranteeing limits on client losses.
Providers could also be banned from offering bonuses or benefits to tempt customers into using CFD products.
At the time of announcing potential rule changes for CFD products, Christopher Woolard, executive director or strategy and competition at the FCA, said: “We have serious concerns that an increasing number of retail clients are trading in CFD products without an adequate understanding of the risks involved and as a result can incur rapid, large and unexpected losses.”
The FCA will continue asking for feedback and data from firms to support its own work while the ESMA discussions are underway.
