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---
title: "ESMA Q&A 1988 — Q&A — Securitised derivatives [Answer Published]"
shortTitle: "ESMA Q&A 1988 — Q&A — Securitised derivatives [Answer Published]"
answer_id: ESMA_QA_1988
topic: "Product intervention"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
binding: false
binding_character: non_binding
legal_status: in_force
regulation: "MiFIR"
mifir_level3: true
mica_level2: false
legal_basis: "ESMA Decision 2018/795; ESMA Decision 2019/796"
date: 30 July 2018
source_link: https://www.esma.europa.eu/publications-data/questions-answers/1988
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 30 July 2018"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1988"
check_status: matched
verified: true
last_checked: 2026-10-26
checked_against: "the ESMA publication"
source:
  prepared_by: "ESMA"
  published_by: "ESMA"
  published_in: "ESMA Q&A tool"
  evidence:
    prepared_by: "ESMA Answer"
    locator: "ESMA Q&A entry ESMA_QA_1988: field 'ESMA Answer', no 'Answer provided by' line"
document_type: "qa_answer"
legal_nature: "not_legislation"
addressees: "not stated in the document"
dates:
  published_on: "2018-07-30"
  question_submitted_on: "2018-07-30"
  locators:
    published_on: "ESMA Q&A Excel export ESMA_QA_1988, column 'Esma responses', date line"
    question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1988, column 'Date of submission'"
lifecycle_label: "Answer Published"
---

**Answer by ESMA, published in its Q&A tool · not legislation · published 30 Jul 2018 [Answer Published]**

*Answer Published · ESMA Q&A register, 30 July 2018 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1988)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1988 — Q&A — Securitised derivatives \[Answer Published\] |
| **Prepared by** | ESMA |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1988 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 30 July 2018; question submitted 30 July 2018 |
| **Legal basis** | ESMA Decision 2018/795; ESMA Decision 2019/796 |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Securitised derivatives**

### Question

Are turbo certificates within the scope of the CFD Decision?

***

### Answer

\[ESMA 35-36-1262 Q&As on Product intervention, Q&A 5.10\]

The CFD Decision explains in Recital 10 that inter alia turbo certificates are not within its scope because, although similar to CFDs, they have different product features.

ESMA clarifies that turbo certificates, unlike CFDs, have all of the following features:

Turbo certificates are not margined products and the investor cannot change the leverage of the turbo certificate by adding margin to or detracting margin from a specific trading account. Investors buy the turbo-certificate and are charged transactional fees, for entering the contract;

Turbo certificates do not have a contingent liability for the retail client. In other words, after the purchase of the product, the retail client has no possibility of being liable for a further payment when the transaction is completed or the position is closed (other than commission, transaction fees or other related costs);

Turbo certificates qualify as a transferable security as defined in Article 4 (1) (44) (c) of MiFID; and

Turbo certificates are typically listed and traded on a regulated market or MTF, which includes additional transparency requirements.

However, ESMA acknowledges that turbo certificates have comparable features to CFDs, such as leverage. Firms should pay particular attention to the leverage made available to retail clients and consider whether the product is offered on terms that act in the best interests of the client. ESMA and NCAs will closely monitor whether new distribution trends in respect of turbo certificates raise similar investor protection concerns for retail clients and whether any firms attempt to circumvent ESMA’s CFD Decision and will act as necessary.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1988)