BaFin

Topic Consumer protection Speculative products: ESMA agrees product intervention measures

Date: 05.04.2018

The European Securities and Markets Authority (ESMA) has agreed product intervention measures on binary options and on the provision of contracts for differences (CFDs).

The measures prohibit the marketing, distribution and sale of binary options to retail investors. In relation to CFDs, leverage limits, a negative balance protection, a margin close out rule, a restriction on the incentives offered to trade CFDs and a risk warning requirement will apply in future.

The resolution was preceded by a public consultation. The measures will now be translated into the official languages of the European Union before being published in the Official Journal of the European Union. The implementation periods will begin upon publication of the measures. ESMA provides answers to frequently frequently asked questions on this topic on its website.

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