ESMA extends the date of banning Binary Options Trading to April 1, 2019.
ESMA stands for European Securities and Markets Authority, which is a Financial Regulatory Agency at European Union.
It is an independent European Authority. Their mission is to enhance investor protection and promote a stable and orderly financial market.
From July 2, 2019, ESMA restricted any type of marketing and selling of Binary Options products to retail investors. However, they decided to extend the date further 3 months from February 2, 2019
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The regulatory agency also restricted leverage on CFDs. The restriction starts from August 1, 2018.
As per their Press Release:
“ESMA has carefully considered the need to extend the intervention measure currently in effect. It considers that a significant investor protection concern related to the offer of binary options to retail clients continues to exist“.
The new extension date was agreed by the by ESMA’s Board of Supervisors on 7 November 2018.
They already published an official notice on their website.
ESMA has taken various significant steps to protect the clients money. For the CFD traders, the steps will protect traders and also give assurance that they will not lose more than their investment.
Binary Options trading bears a high risk. For the characteristics of this trading product, ESMA decided to ban for a while.