The Cyprus Securities and Exchange Commission (CySEC) has updated its rules on marketing, distributing, and selling contracts for difference (CFDs) to private clients.

The new directive, effective from its publication on September 5, 2025, replaces previous rules and aims to protect retail investors from excessive risks.

“CFDs carry a high risk of losing money rapidly due to leverage, and many private investors are exposed to losses they cannot afford,” CySEC said.

The update lowers the maximum exposure allowed for certain CFD contracts.

Under the new rules, only 10 per cent of the nominal value of a CFD can be offered to private clients when the underlying asset is a commodity or a stock index that is not already covered by previous restrictions, they added.

CySEC explained that the directive should be read together with the previous rules issued in 2019, and both sets of rules now form the complete framework for CFD sales to private clients in Cyprus.

The authority emphasised that these measures are part of ongoing efforts to strengthen investor protection and reduce the risks associated with complex financial products.

The commission also stated that the directive aligns Cyprus with European Union regulations on financial markets and investment services.