Warning against Binary Options and CFDs

* Update on 24 August 2018: The European Supervisory and Market Authority today renewed the prohibition of the marketing, distribution or sale of binary options to retail clients, in effect since 2 July, from 2 October 2018 for a further three-month period. ESMA has also agreed on the exclusion of a limited number of products from the scope of the measure.*

The Central Bank of Ireland today warned consumers against binary options and welcomed the decision by the European Supervisory and Market Authority (ESMA) to prohibit the sale of binary options. 

The Central Bank of Ireland also welcomed the temporary measures imposed on CFDs by ESMA, which include a limitation on leverage and the introduction of measures to ensure retail investors cannot lose more money that they put in.

The measures will provide greater investor protection across the EU by ensuring a common minimum level of protection for retail investors.

Director General, Financial Conduct, Derville Rowland (a member of the Board of Supervisors of ESMA) said:

“We have strongly advocated the use by ESMA of its newly introduced temporary powers to limit or prohibit the sale of financial products. ESMA has provided temporary protection for investors while we and other regulators around Europe decide on whether to impose longer term controls.”

Note:

• ESMA is an independent EU authority that contributes to safeguarding the stability of the European Union's financial system by enhancing the protection of investors and promoting stable and orderly financial markets.