Binary options are still banned. ESMA extends the ban by 3 months

As might be expected, the European Securities and Markets Authority (ESMA) decided to extend for the next 3 months the ban on offering binary instruments to retail clients. Guidelines that came into force on July XUMUM 1 will apply at least to 2018 March 31.

You have to see: ESMA extends the 1 leverage limit: 30 for another 3 months

Temporary ban only in theory?

This information probably did not surprise anyone. Besides, relatively few traders equate binary options with the form of investment, hence the very adjustment of these is negative. Therefore, it is not surprising that the regulator itself, which represents a rather conservative approach to CFD / Forex instruments, has just made such a decision.

The current ban will be binding at least until 1 January 2019 year, but it is already known that the new one, which is going through the unchanged formula and will be valid until 31 March 2019. It is worth mentioning that according to the original assumptions, the guidelines were to be temporary in nature. possibility of extending for another three months. In practice, however, ESMA can extend this term indefinitely.

In the ESMA statement, we can read:

"ESMA has carefully considered the need to extend the current intervention measure. He believes that there is still a serious investor protection problem associated with offering binary options to retail customers. "

Admittedly, 3 months ago there was a hint of hope where the European regulator decided to introduce some exemptions regarding, inter alia, instruments with a maturity of over 90 days, but the "classic" and well-known OBs are likely to never return to FX / CFD brokers' offers targeted at retailers.