CMC Welcomes Proposal to Regulate CFDs

Media Release
16 April 2007

CMC Markets Welcomes Securities Commission Proposal to Regulate CFDs

CMC Markets, New Zealand’s leading CFD (Contract for Difference) provider, welcomes the Securities Commission review into CFD regulation.

CFDs, a derivative product, are one of the fastest growing financial tools on world markets and fast gaining popularity among New Zealand traders. The Securities Commission discussion paper proposes that people dealing in CFDs will be required to obtain authorisation to deal in futures contracts under the Securities Markets Act.

Sargon Elias, general manager of CMC Markets New Zealand applauds the move. “The continuing clarifying and strengthening of regulation of New Zealand’s CFD market would be a very positive, and necessary, step forward for the industry.

“We are seeing rapid growth in CFD trading in New Zealand, and overseas experience has indicated we can expect a significant number of CFD providers to enter the market in the future. It is therefore imperative to have appropriate regulatory measures in place to protect traders and investors and ensure CFD providers continue to act in a responsible manner for the betterment of the industry.”

About CMC Markets
CMC Markets New Zealand, an online trading company, is the largest share, index, sector and margin FX CFD provider in New Zealand. CMC Markets has operations in New Zealand, Australia, Canada, China, Germany, Hong Kong, Singapore, Sweden the UK and the US with clients in over 55 countries worldwide. It is committed to offering the most cost effective trading solutions to retail investors.
www.cmcmarkets.co.nz

ENDS

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