The use of TTCA in spread betting and contract for differences (CFD) transactions is now only permissible in relation to non-retail clients (i.e. those categorised as professional clients or eligible counterparties). The changes came into force on 1 December 2010.
MiFID review of TTCA The use of TTCA is likely to be reviewed again. Not only has the FSA stated its intention to review the wider application of restrictions on the use of TTCA to other products and businesses, the European Commission, as part of the MiFID review, is also proposing that TTCA should not be permitted when dealing with retail clients generally. The European Commission is also considering allowing Member States the option to exclude TTCA in the case of professional clients and eligible counterparties and/or requiring suitable warnings to be given to these clients where TTCA is permitted.
This article was first published on www.complinet.com on 31 January 2011.