November 09, 2018 | AtoZ Markets – The European Securities and Markets Authority (ESMA) has announced in a statement today, that it will renew its ban on binary options for another three months.
The supposed ban will come into effect as soon as the current one ESMA had imposed before comes to an end on January 2, 2019, to complete a period of three months as it was decided in the previous ban decision.
“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.”, read ESMA’s statement.
The ban might continue for two years!
According to ESMA, the decision was reached after a meeting that gathered its Board of Supervisors last Wednesday.
Market analysts had signaled in their expectations earlier that the regulatory body would extend its ban on binary options once the current one comes to an end, amid reads of continuing the ban over the next two years.
ESMA has not indicated in its new notice any change pertinent to the position of the contracts-for-differences (CFDs) trading, with regard to binary options.
The EU regulator had said last August that long-term investments, which it defined as over 90 days, do not pose a threat to retail investors, the thing that pushed some investors to expect the on-going ban to be the last one ESMA imposes on binary options.