29/3/ · FCA confirms permanent ban on the sale of binary options to retail consumers. Following consultation feedback, the Financial Conduct Authority (FCA) is today confirming all firms acting in or from the UK are prohibited from selling, marketing or distributing binary options to retail blogger.comted Reading Time: 2 mins have been required to be authorised by the FCA. Discussion on binary options in CP16/40 On 6 December , we outlined our early policy considerations for the sale and distribution of binary options to retail consumers in a Discussion Chapter within CP 16/ Enhancing conduct of business rules for firms providing contract for difference 7/12/ · On 7 December , the FCA published Consultation Paper 18/ Product intervention measures for retail binary options (CP18/37). Earlier this year the European Securities and Markets Authority (ESMA) introduced a temporary EU-wide product intervention measure to ban investment firms from marketing, distributing or selling binary options to retail consumers
There are currently a number of temporary restrictions in place on the sale of leveraged derivatives products to retail traders by firms in the UK or brokers selling into the UK. These fca consultation binary options a ban on binary options trading and restrictions on the marketing and sale of Contracts for Difference CFDsand similar products like financial spread bets, to the retail market. These restrictions have been partly driven by the European Securities and Markets Authority ESMAwhich is the pan-European body representing European financial regulators.
The FCA is currently consulting with brokers but also wants to hear from private traders on whether it should make these temporary restrictions more permanent. The focus is really on the way derivatives like CFDs and financial spread bets have been sold to the general public.
The FCA is concerned that many novice traders have been encouraged to open high risk, leveraged trading accounts without fully understanding the risks, and this has led to high losses.
The FCA reckons that the reforms could reduce losses by retail traders in the UK by between £ The binary options ban could save a further £17 million, as well as help to curb fraudulent organisations claiming to offer binary options trading. The FCA is also consulting on whether the ban should be extended to futures trading as well, fca consultation binary options. The consultation papers on binary options and CFDs are open until 7 February while the paper on other OTC and complex retail derivatives products is open until 7 March.
Private traders may provide their own feedback to the FCA. The FCA is also going to consult shortly on the sale of CFDs that are linked to cryptoassets like Bitcoin and Ethereum. Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, fca consultation binary options as an investment banking correspondent for Euromoney in Hong Kong.
He was the founder editor of The Hedge Fund Journal. Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms, fca consultation binary options.
He is also the author of two books on trading, published by Financial Times Pearson. Our partners are established businesses, regulated by the Financial Conduct Authority, and we are grateful for their support, fca consultation binary options.
Twitter Facebook Instagram LinkedIn RSS. no more running up losses large than the funds you already have on account Protections will have to be put in place fca consultation binary options guarantee that traders cannot lose more than the money they have on account already Brokers will not be able to offer monetary and non-monetary inducements to open an account The standardised risk warning, which tells traders what percentage of fca consultation binary options clients are losing money with that broker, will become a permanent thing.
Further reading for Armchair Traders: Spread betting and CFD changes under the new ESMA leverage restrictions New European CFD leverage restrictions — good or bad for traders?
CFD broker argues uniform tighter leverage not necessary for all traders European regulator slams CFD brokers with new leverage restrictions. Share this article. Tweet Share Pin It Share Email. Stuart Fieldhouse Stuart Fieldhouse has spent 25 years in journalism and marketing, fca consultation binary options, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong, fca consultation binary options.
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Is Binary Option Trading a SCAM?
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13/12/ · The FCA is also consulting on whether the ban should be extended to futures trading as well. The consultation papers on binary options and CFDs are open until 7 February while the paper on other OTC and complex retail derivatives products is open until 7 March. Private traders may provide their own feedback to the FCA 7/12/ · On 7 December , the FCA published Consultation Paper 18/ Product intervention measures for retail binary options (CP18/37). Earlier this year the European Securities and Markets Authority (ESMA) introduced a temporary EU-wide product intervention measure to ban investment firms from marketing, distributing or selling binary options to retail consumers 29/3/ · FCA confirms permanent ban on the sale of binary options to retail consumers. Following consultation feedback, the Financial Conduct Authority (FCA) is today confirming all firms acting in or from the UK are prohibited from selling, marketing or distributing binary options to retail blogger.comted Reading Time: 2 mins
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