On September 28, 2017, the Canadian Securities Administrators
(other than the British Columbia Securities Commission) announced
the adoption of new Multilateral Instrument 91-102 Prohibition of
Binary Options and the related Companion Policy (collectively,
the Binary Options Rule), aimed at banning the sale of binary
options having a term to maturity of less than 30 days. The ban
will take effect in all Canadian jurisdictions (other than British
Columbia) on December 12, 2017, subject to government ministerial
approvals in certain jurisdictions.
The adoption of the Binary Options Rule follows the CSA's
establishment of a Binary Options Task Force to pursue a
proactive role in dealing with fraud and misleading information
associated with the sale of binary options in Canada. The Binary
Options Rule is part of a multi-pronged effort by the CSA to combat
binary options fraud, including a CSA
website dedicated to educating investors about fraudulent
binary options
