BaFin to Implement Permanent Binary Options Measures
- The regulator has put in prohibition measures to come into effect once ESMA’s expire.
After initially stating its intention to make the ban of binary options permanent in Germany towards the end of last year, the Federal Financial Supervisory Authority in Germany, more commonly referred to as BaFin, has yet again restated this intention.
This Monday, the German regulator announced that as of July 2, 2019, the marketing, distribution, and sale of binary options to retail clients would continue to remain prohibited in the country, if the European-wide measures are not renewed.
The watchdog has set out its intentions in a general administrative act in response to the expiry of the European Securities and Markets Authority’s (ESMA) product intervention measures on July 1, 2019.
According to BaFin, binary options pose a lot of risks for investors: “As binary options typically are extremely short-term instruments, it is difficult for retail investors to accurately assess the risk-return profile.
“Moreover, binary option providers usually act as the direct counterparty to their clients’ trades. This places the provider’s interests in direct conflict with those of its investors.”
As Finance Magnates reported, BaFin first announced that it was planning to adopt permanent binary options prohibition measures back at the end of November of last year.
European Regulators Implement Permanent Product Measures
The German regulator is not alone in its actions. Earlier today, the Financial Conduct Authority (FCA) confirmed the rules that it will use to regulate the retail trading industry, relating to contracts for difference (CFDs).
As expected, the British regulator is going to adopt leverage caps for CFDs, ranging from 2:1 to 30:1. These Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term restrictions are similar to those put in place by ESMA last August.
The Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) is another notable regulator who announced that it would implement its own national measures. Although drawing inspiration from ESMA, the Cypriot regulator put its own twist on things by proposing three tiers of leverage.
After initially stating its intention to make the ban of binary options permanent in Germany towards the end of last year, the Federal Financial Supervisory Authority in Germany, more commonly referred to as BaFin, has yet again restated this intention.
This Monday, the German regulator announced that as of July 2, 2019, the marketing, distribution, and sale of binary options to retail clients would continue to remain prohibited in the country, if the European-wide measures are not renewed.
The watchdog has set out its intentions in a general administrative act in response to the expiry of the European Securities and Markets Authority’s (ESMA) product intervention measures on July 1, 2019.
According to BaFin, binary options pose a lot of risks for investors: “As binary options typically are extremely short-term instruments, it is difficult for retail investors to accurately assess the risk-return profile.
“Moreover, binary option providers usually act as the direct counterparty to their clients’ trades. This places the provider’s interests in direct conflict with those of its investors.”
As Finance Magnates reported, BaFin first announced that it was planning to adopt permanent binary options prohibition measures back at the end of November of last year.
European Regulators Implement Permanent Product Measures
The German regulator is not alone in its actions. Earlier today, the Financial Conduct Authority (FCA) confirmed the rules that it will use to regulate the retail trading industry, relating to contracts for difference (CFDs).
As expected, the British regulator is going to adopt leverage caps for CFDs, ranging from 2:1 to 30:1. These Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term restrictions are similar to those put in place by ESMA last August.
The Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) is another notable regulator who announced that it would implement its own national measures. Although drawing inspiration from ESMA, the Cypriot regulator put its own twist on things by proposing three tiers of leverage.