CFDs are subject to product-specific promotion and distribution rules in COBS 22, such as leverage limits and negative balance protections, reflecting the risks of leverage, short-term trading and complexity, whereas Leveraged ETPs, which track the performance of underlying assets and amplify gains and losses, have daily resetting periods and are designed for short-term trading, but are not subject to the same requirements. Some products such as binary options are currently banned for retail access, and the FCA considers the risks of gambling-like products to be different from investment risk, committing to keep its regulatory framework under review as products develop that exploit gambling-like behaviours.
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