March 27, 2018 / 7:44 AM / a month ago

BRIEF-UK's FCA Says ESMA announced plans to ban 'binary' options sales to retail investors

March 27 (Reuters) - UK’S FCA:

* ESMA AGREED RANGE OF PRODUCT INTERVENTION MEASURES TO PROHIBIT PROVISION OF BINARY OPTIONS, TO RESTRICT PROVISION OF CFDS

* ESMA PRODUCT INTERVENTION MEASURES TO BE APPLIED TO PROVISION OF CFDS - ROLLING SPOT FOREX, FINANCIAL SPREAD BETS, BINARY OPTIONS TO RETAIL CLIENTS

* RESTRICTIONS APPLIED TO CFDS ARE: LEVERAGE LIMITS ON THE OPENING OF A POSITION BETWEEN 30:1 AND 2:1, DEPENDING ON THE PRICE VOLATILITY ‍​

* RESTRICTIONS APPLIED TO CFDS ARE A 50% MARGIN CLOSE OUT RULE APPLIED ON A PER ACCOUNT BASIS

* RESTRICTIONS APPLIED TO CFDS ARE: NEGATIVE BALANCE PROTECTION, LIMITING RETAIL CLIENTS LIABILITY TO THE FUNDS IN THEIR CFD TRADING ACCOUNT‍​

* RESTRICTIONS APPLIED TO CFDS INCLUDE PROHIBITION ON FIRMS OFFERING MONETARY, NON-MONETARY BENEFITS TO RETAIL INVESTORS

* RESTRICTIONS APPLIED TO CFDS ARE: A STANDARDISED RISK WARNING (Reuters.Briefs@thomsonreuters.com)

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