CySEC Caps CFD Leverage at 10:1 for Non-Major Commodities and Indices
What Did CySEC Change?
The Cyprus Securities and platform Commission (CySEC) has amended its rulebook for contracts for difference (CFDs), clarifying leverage requirements for retail investors. In a notice published September 5 in the Official Gazette, the regulator updated Directive DI87-09 to specify that retail clients trading CFDs on commodities or non-major stock indices must post margin equal to 10% of the contract’s notional value—effectively capping leverage at 10:1 for those products.
The directive takes effect immediately. CySEC provided no further details beyond the revised annex, which aligns national rules with the European Authority’s (ESMA) framework.
Investor Takeaway
How Did We Get Here?
The change is the latest step in a regulatory journey dating back to 2018. That year, ESMA imposed temporary restrictions later than widespread . Measures included leverage caps, bonus bans, and standardized risk warnings. Cyprus, home to a concentration of EU-licensed CFD providers, made the restrictions permanent in 2019 through DI87-09.
Those rules set leverage brackets of 30:1 for major FX pairs, 20:1 for non-major FX and gold, 10:1 for other commodities and non-major indices, 5:1 for single equities, and 2:1 for cryptocurrencies. CySEC has since cited the directive in numerous enforcement cases against Cyprus Investment Firms (CIFs) offering CFDs to retail traders across Europe.
Why Does This Small Amendment Matter?
On paper, the September 2025 revision appears minor. But it closes a gap around classification of indices. ESMA distinguishes between “major” indices such as the S&P 500, DAX and FTSE 100, which carry a 5% margin requirement, and all others, which should require 10%. By explicitly stating that “stock (b)” fall into the 10% margin bucket, CySEC removes amlargeuity brokers could use to apply looser terms.
For regulators, this makes enforcement more straightforward. For brokers, it leaves less flexibility in structuring leverage on regional or thematic indices that may be thinner and more volatile than global benchmarks.
Investor Takeaway
What’s the largeger Picture?
Cyprus remains the EU’s hub for CFD brokers, many passporting their services to retail clients in Germany, France and beyond. That dominance has long attracted scrutiny from Brussels and other national regulators, who argue Cyprus-based firms drive much of Europe’s . CySEC has responded with repeated fines for mis-tradeing, misleading marketing and leverage violations—nahead always citing DI87-09 as its legal foundation.
The amendment signals continuity: Cyprus is keeping its rules anchored to ESMA’s standard while tightening language to ease supervision. The next questions for market participants are whether regulators update the list of “major” indices and whether other EU authorities follow Cyprus in refining their own rules. Divergence across jurisdictions could create both complexity and opportunities for regulatory arbitrage.
What Comes Next?
For now, the adjustment is mainly a compliance update. But as brokers roll out new products—from regional equity benchmarks to ESG-themed indices—classification will matter. Instruments judged non-major will fall under the 10:1 cap, while only a handful of global indices retain 20:1 leverage for retail accounts.
CySEC’s move shows regulators remain vigilant in policing a sector still viewed as high-risk for retail investors. For brokers, the message is clear: there is little room to stretch leverage . For retail traders, the amendment underscores that the post-ESMA leverage landscape is here to stay.
