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Based in Exeter - working across prop trading firms worldwide

Glossary · Compliance

ESMA

  • Also called
  • European Securities and Markets Authority
  • product intervention
  • CySEC

What it means

For prop firms, ESMA is relevant mainly through its work on retail CFD and forex products, including the 2018 product intervention measures on leverage and marketing that national regulators then adopted, and through its coordination of national authorities across the EU.

Day-to-day supervision is national: CySEC in Cyprus, BaFin in Germany, AMF in France, CONSOB in Italy and others. National regulators may take different views of retail prop models and issue their own warnings.

Firms selling into the EU should check the positions of the national regulators in their main markets rather than assume a single EU rule applies.

Related terms

Read these next.

Compliance

FCA financial promotion

A financial promotion is a communication inviting someone into investment activity; in the UK, the FCA regime restricts who may make them and how, which affects some prop marketing.
Compliance

MiCA

MiCA (Markets in Crypto-Assets Regulation) is the EU regulation for crypto-asset issuers and service providers, relevant to prop firms that take or pay in crypto or stablecoins.
Compliance

Marketing claims

Marketing claims are statements a prop firm makes to sell its programs, such as payout totals, pass rates, speed and income; each must be accurate, sourced and not misleading.
Compliance

Risk disclosure

A risk disclosure is the statement a prop firm publishes explaining that trading is risky, that accounts are simulated where they are, and that results are not typical or assured.
The website

hreflang

hreflang is an HTML or sitemap annotation that tells search engines which language or regional version of a page to show to which users.

On your website

Where this shows up on a prop firm site.

Feature

Trust center

One place for the facts a cautious trader checks: the legal entity, address, people, policies, restricted countries and how payouts work.
Tool

Prop Firm Disclaimer Generator

Draft the simulated-trading and risk disclaimer every prop firm page needs, for your lawyer to review.

Looking for a prop firm to trade with, not a website? Compare firms on PropFirmPal, the comparison site our founder owns.Go to PropFirmPal →

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