Giambrone Forex Team lobbies ESMA to extend ban on binary option
GIAMBRONE, the leading global firm at the forefront of all major Forex and Binary Option Litigation to protect consumers and investors worldwide, reports that the European Securities and Markets Authority (ESMA) has announced that it has agreed to extend the restrictions for binary options which prohibits the marketing, distribution or sale of binary options to retail investors.
Our Forex Lawyers have long campaigned for this extended ban in Europe and we are pleased to report that the regulator in Europe has taken such a strong stance to protect Binary Option investors.
ESMA have advised that this action will be effective from Tuesday 02 October 2018, for an extended three months, lasting until January next year. The ban has been in effect since 02 July 2018.
The pan-European regulator initially announced that it would renew its restrictions on binary options back in August this year. At the same time, the regulator also announced some changes to the renewal.
ESMA, have also advised that this has come into place due to “significant investor protection concern related to the offer of CFDs to retail clients continues to exist”.
In line with the previous announcement, the European Securities and Markets Authority (ESMA) said it had adopted a Decision under Article 40 of Regulation (EU) No 600/2014 to prohibit the marketing, distribution or sale of binary options to retail clients
ESMA believes that a binary option that benefits from the cumulative effect of these three criteria is less likely to lead to a significant investor protection concern.
Joanna Bailey, an Associate within our Financial Services Litigation Department, shares her views on the new announcement: “This is good news for consumers and investors as it will hopefully strengthen the regulatory regime on Binary Option trading”.