ESMA issues positive opinion on Austria’s rules concerning CFDs and binary options

Maria Nikolova

ESMA’s opinion finds that the proposed measures are justified and proportionate.

The European Securities and Markets Authority (ESMA) has today issued two positive opinions on proposed product intervention measures taken by Austria’s financial markets authority (Finanzmarktaufsicht or FMA).

ESMA’s opinion finds that the proposed measures related to the offering of binary options and CFDs are justified and proportionate.

Austria’s national measure regarding binary options consists of a permanent prohibition on the marketing, distribution or sale of binary options to retail clients in or from Austria. The FMA informed ESMA that the national measure is the same as ESMA’s measure at national level, with the difference that the national measure would not expressly prohibit participating in circumvention activities. The national measure is expected to take effect on May 30, 2019.

The national measures regarding CFDs consist of a permanent restriction on the marketing, distribution or sale of CFDs to retail clients in or from Austria. The FMA informed ESMA that the national measures are the same as ESMA’s measures at national level, with the differences that the national measures would: (i) include minor amendments to several of the risk warnings in ESMA’s measures; (ii) include a definition of virtual currencies; and (iii) not expressly prohibit participating in circumvention activities. The national measures are expected to take effect on May 30, 2019.

Although the national measures would not expressly prohibit participating in circumvention activities due to national constitutional constraints, the FMA has assured ESMA that it will ensure through its supervisory and enforcement activity that the national measures are correctly applied.

In April this year, ESMA issued positive opinions regarding the national product intervention measures introduced by three countries – Poland, the UK and the Netherlands.

In a recently published newsletter, the pan-EU watchdog made a brief remark regarding the cases where its opinion on the product intervention measures adopted by NCAs is negative.

“If ESMA concludes that a proposed national product intervention measure is not justified or proportionate it will say in its opinion. If an NCA proposes to take, or takes, action contrary to an opinion adopted by ESMA, the NCA shall immediately publish on its website a notice fully explaining its reasons for so doing”.

Read this next

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”

<