Paris, France. Retail proprietary trading is no longer among the European Securities and Markets Authority’s immediate regulatory priorities, according to Cyprus Securities and Exchange Commission chairman George Theocharides. He said ESMA is not currently engaged in substantive discussions on regulating the retail prop trading industry.
Comments from Theocharides
Speaking to Finance Magnates, Theocharides, who also chairs ESMA’s risk standing committee, said that, to the best of his knowledge, there are no substantial discussions underway on the sector.
He said the topic may still be monitored as part of broader market developments, but does not appear to rank among the authority’s immediate priorities because of the sector’s relatively limited size.
Shift in regulatory focus
The comments indicate a shift from the stance seen over the past two years, when the sector had drawn increasing attention in Paris amid suggestions that retail prop trading could eventually fall within the scope of MiFID II, particularly under provisions governing proprietary trading.
A year earlier, Theocharides had described retail prop trading as being “on the radar”, but indicated that the issue has since moved lower on the list of priorities.
Market growth
According to the report, ESMA declined to comment on the issue.
Finance Magnates said the lack of regulatory momentum comes despite strong growth in the retail prop trading market. Google Trends data cited by the publication showed search interest rising sharply across the United Kingdom, the United States and Germany over the past five years.
Germany recorded an increase of more than 1,050 per cent in searches for the term “prop firm”, reaching its highest level in February 2026.
Drivers of demand
The publication said much of the sector’s growth has been driven by younger traders attracted by the opportunity to trade with larger pools of capital without risking significant personal funds.