Statement on preparatory work of the European Securities and Markets Authority in relation to CFDs and binary options offered to retail clients The European Securities and Markets Authority ESMA is issuing this statement to provide an update on its work in relation to the provision of contracts for differences CFDsincluding rolling spot forex, and binary options to retail clients.
ESMA has been concerned about the provision of speculative products such as CFDs, including rolling spot forex, and binary options to retail clients for a considerable period of time and has conducted ongoing monitoring and supervisory convergence work in this area.
Some competent authorities have also adopted national measures to limit the provision of these products to retail clients. Notwithstanding these actions, ESMA remains concerned that the risks to investor protection are not sufficiently controlled or reduced. In particular, ESMA is considering measures to: 1.
ESMA will conduct a brief public consultation in January on this matter. ESMAs mission is to enhance investor protection and promote stable and orderly financial markets. It achieves these objectives through esma restrictions on binary options activities: i.