Spread betting firms are reeling after European Union securities regulators announced plans to further restrict their use.

On Friday, the European Securities and Markets Authority (ESMA) issued an update on its probe into the sale of contracts for differences (CFD), including rolling spot forex, and binary options to retail clients. ESMA also announced that it would conduct a brief public consultation in January before whipping out its ban-hammer.

ESMA noted that it had been concerned about these types of financial products for some time, and acknowledged that some jurisdictions, including the UK, had imposed national measures to limit retail clients’ access and exposure to CFDs, binary options and the like, after determining that over four-fifths of CFD customers were four-figure losers.

Among the new curbs ESMA is considering are a blanket prohibition on marketing, distribution or sale of binary options or CFDs to retail clients in EU member states. Additional restrictions for limiting leverage of CFD trades are also currently under review.