Contracts for difference were notorious before Anglo Irish Bank

The secret behind the success of CFDs here 10 years ago was that they generated obscene profits for Irish brokers — eclipsing the margins they earned at the time from their traditional private client business and their dealings in Irish shares.

The first public sign that CFDs could cause big trouble came during one Monday in 2005 when shares in Elan collapsed. But despite investors holding positions in Elan through CFDs suffering an estimated €50m in losses, CFD business continued as normal.

Brokers and investment firms in Ireland were retailers of CFD products for large investment houses in London. The warning of 2015 was ignored by investors and regulators alike.