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ARTICLE · 07 JUNE 2018

Final Product Intervention Measures Adopted By ESMA On CFDs And Binary Options.

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New measures on the provision of contracts for differences (‘CFDs') and binary options to retail investors have been formally adopted by the European Securities and Markets Authority (‘ESMA') ...

MaltaFinance and Banking
Julia Tirazona
Julia Tirazona

New measures on the provision of contracts for differences ('CFDs') and binary options to retail investors have been formally adopted by the European Securities and Markets Authority ('ESMA') with the aimto further enhance investor protection in the EU.

The measures for binary options will become applicable as from the 2nd of July 2018. These will consist of a prohibition on the marketing, distribution, or sale of such products to retail investors.

The measures concerning CFDs will apply as from the 1st of August 2018, and will entail a restriction on the marketing, distribution, or sale of CFDs to retail investors including the following:

  • Leverage limits on opening positions by a retail client from 30:1 to 2:1. Such limits will vary according to the volatility of the underlying:

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