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Image header Agence Europe
Europe Daily Bulletin No. 11943
Contents Publication in full By article 21 / 28
NEWS BRIEFS / Finance

ESMA considers restricting sale of financial contracts for differences and binary options

19/01/2018 (Agence Europe)On Thursday 18 January, the European Securities and Markets Authority (ESMA) launched a public consultation on potential measures to govern the availability of binary options and contracts for differences (CFD) to retail investors. Both products are derivative instruments that are considered high-risk to consumers. Under the powers of intervention conferred upon it by the MiFIR financial instruments markets regulation, the European supervisor is considering prohibiting the promotion, distribution and sales to consumers of binary options. As regards CFD, ESMA's plans are less radical and it is considering restrictive measures rather than a ban, which may include limiting the leverage, restricting incentives to trading on the part of suppliers and bringing in measures to limit losses. Stakeholders have until 5 February to submit their comments at the following address: http://bit.ly/2DpsIH3 . (MF)

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