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The International Organization of Securities Commissions (IOSCO) on Tuesday issued a consultation report proposing policy measures to address the risks arising from the offer and sale of over-the-counter (OTC) leveraged products to retail clients.

The Report on Retail OTC Leveraged Products identifies various regulatory approaches aimed at enhancing the protection of retail investors who are offered OTC leveraged products.

It covers the offer and sale by intermediaries of rolling-spot forex contracts, contracts for differences (CFDs), and binary options.

In the report, IOSCO calls on regulators to improve the practices of registered firms that offer OTC leveraged products, and to combat illegal cross-border activity.

“Typically, the products are offered through online trading platforms, and often though aggressive or misleading marketing campaigns. Several studies show that a large majority of retail investors in these complex products lose money,” IOSCO says in a news release.

The proposals are out for comment until March 27.