Dutch binary options advertising ban set to take effect in mid-2017

Maria Nikolova

The timing details appeared in the latest annual report by Dutch financial markets regulator AFM.

The proposed ban on the advertising of harmful financial products like binary options in the Netherlands is set to come into effect in mid-2017. At least these are the intentions stated in the latest Annual Report just published by the Dutch financial markets regulator AFM.

FinanceFeeds has already informed its readers about the plans by AFM to introduce such a ban. In February this year, the regulator opened a Consultation into proposals concerning high-risk investment products, like CFDs with leverage higher than 10x and binary options. The Consultation closed on April 3, 2017.

Commenting on the plans, the Dutch regulator referred to a review conducted by the French supervisor in 2014, which showed that on average 89% of investors lost money on CFDs and that the average loss incurred was €10,887. A review by the UK Financial Conduct Authority has revealed that around 82% of investors had suffered losses. The Dutch regulatory body says that “there is no reason to believe that the results would be substantially different for Dutch investors”.

The AFM also stresses the aggressive marketing of such products.

The Minister of Finance of the Netherlands stated that he wished to introduce such an advertising ban in cooperation with the AFM in September 2016.

In terms of international co-operation, the AFM says it is actively participating in an ESMA working group that is working on rules for these products. The working group shares analyses and discusses how supervision of these products within Europe can be harmonised. The Dutch regulator backs a European policy for speculative products, including binary options and CFDs. The AFM says it has supported the Cypriot financial regulator in its review of providers offering binary options and CFDs from Cyprus.

France has already introduced a ban on the advertising of binary options and other high-risk products. However, some companies appear to be reluctant to comply.

Read this next

blockdag

Top Crypto Investment: BlockDAG Outpaces Bitcoin Price and Cardano ADA Upgrades, Securing $19.3M in Revolutionary Presale

After plummeting below the crucial $70,000 mark amidst geopolitical tensions, the Bitcoin price is signalling a recovery as it climbs past $63,000. Concurrently, Cardano ADA upgrades, particularly the much-anticipated Chang Hardfork.

Fundamental Analysis, Tech and Fundamental

Global FX Market Summary: Middle East, US economic data, Eurozone data April 22 ,2024

US Dollar strengthens as easing Middle East tensions and strong economic data boost investor confidence, while dovish central banks and weak data weigh on the Euro.

Digital Assets

Thailand moves to block crypto websites to combat online crime

Thai authorities announced that they will block access to unauthorized cryptocurrency platforms. The decision was made after a meeting of the Technology Crime Prevention and Suppression Committee.

Tech and Fundamental, Technical Analysis

GBPUSD Technical Analysis Report 22 April, 2024

GBPUSD currency pair can be expected to fall further toward the next support level 1.2200, previous strong support from November.

Fintech

TT now enables users to create synthetic multi-leg instruments

“TT Splicer combines the ease and flexibility of TT’s market-leading Autospreader with the power of our best-in-class execution algos to uniquely minimize slippage and optimize trade execution when trading synthetic multi-leg spreads.”

Fintech

Imandra launches FIX Wizard: AI assistant for FIX connectivity suite

“LLMs hold tremendous promise, but ultimately cannot be trusted in regulated environments. By combining their strengths with scalable, rigorous automated reasoning, we obtain a kind of magic: conversational interfaces with correct reasoning and domain-specific skills.”

Chainwire

Sui Overflow Hackathon Funding Pool Balloons to $1,000,000 as New Sponsors Join

Alibaba Cloud, AngelHack and dWallet are among the latest supporters for the global event.

Institutional FX

Liquidnet launches SuperBlock Matching for equities trading

“The creation of a protected space to trade the most challenging blocks is a direct response to a request from our Membership and is an extension of our existing block trading offering, to facilitate more complex and nuanced trades.”

Retail FX

Midas raises $45 million to expand brokerage beyond Turkey

Midas has raised $45 million in equity funding to expand and roll out three new products: cryptocurrency trading, mutual funds, and savings accounts.

<