France’s AMF: Some Cypriot CFD and binary options brokers keep breaking advertising ban

Maria Nikolova

France’s financial regulator says it will not prohibit the activities of brokers that breach the ban for the time being as the new MIFID II and MIFIR rules, which envisage more effective penalties, will soon come into force.

In the face of the ban on advertising of toxic financial products, such as binary options and certain types of CFDs, some companies, many of which are Cypriot, continue to violate the Sapin 2 law in France. This was confirmed by Robert Ophèle, Chairman of France’s financial markets authority AMF.

In a speech delivered on Thursday, October 5, 2017, Mr Ophèle said that the way toxic products are marketed remains one of the main challenges for the regulator.

He quoted statistics showing that the number of advertisements about trading of such products distributed from February to July 2017 was down by 60% compared to the same period in the preceding year. However, the number of new advertisements about online trading of toxic products distributed after the Sapin 2 law came into force reached 162 at the end of August. A total of 28 providers of online trading services were responsible for these advertisements. Of these 28 companies, 26 were registered in an EU member state other than France. Of these 26 brokers, 19 were Cypriot, a fact that the AMF Chairman called barely surprising.

AMF has turned to the companies that break the law, demanding that they withdraw their ads – the majority have complied with the regulatory demands. Nevertheless, certain Cypriot companies have shown reluctance to comply with the law, the AMF Chairman has confirmed. The regulator had considered evoking MIFID article 62, in order to prohibit the activities of these companies in France. This article was used back in August 2016, when AMF acted against the Cypriot firm Rodeler Limited.

This time, however, the French regulator has decided not to apply this rule and instead to wait for the coming into effect of the new MIFID II and MIFIR rules – their entry into force is just three months away.

The new rules will allow ESMA to prohibit the marketing of financial products across the European Union for a period of three months for purposes of consumer protection. National authorities will be able to ban such activities for an unlimited period of time within the particular EU member state.

Read this next

Digital Assets

LMAX Digital onboards Bryan Christian and Cassandra Cox to lead sales

Institutional cryptocurrency exchange LMAX Digital continues to undergo a series of changes in its top ranks as it continues to build its presence globally. Two industry veterans, Bryan Christian and Cassandra Cox, have joined the group as its newest sales directors in Europe and USA.

Digital Assets

Cake DeFi introduces Ethereum Staking with 5% returns

Cake DeFi, a Singapore-based DeFi platform, is launching its Ethereum (ETH) staking service for retail and institutional customers.

Retail FX

FX trading rebounds 405pct at Saxo Bank in September

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded strongly in September to the highest level in three months.

Retail FX

CMC Markets’ stock climbs as H1 revenue to climb +20%

CMC Markets PLC (LSE:CMCX) shares spiked 5.6 percent to 235p in Thursday’s trading after the firm’s trading update for the first half of its fiscal year 2023 revealed results at the high end of company projections.

Retail FX

Interactive Brokers doubles client accounts to 2 million in 24 months

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes took a slight step back in September, an indication that investor confidence is still fairly mixed over the past few months.

Digital Assets

DeFiChain tokenizes Walmart, Unilever, US Oil and Gas Funds

Bitcoin-based DeFi platform DeFiChain is opening up the opportunity for its users to trade crypto versions of Walmart, Unilever, US Oil Fund, and US Gas Fund.

Industry News

The B2Broker B2Core REST API Is Now Live

B2Broker has announced the release of its new REST API, which lets customers use B2Broker’s solutions and services for business purposes.

Executive Moves

CME Group taps Paul Woolman to lead Equity Index, Giovanni Vicioso to lead Crypto

“Our equity and cryptocurrency businesses have experienced tremendous growth in recent years, underpinned by strong customer adoption and continued innovation.”


Sumsub launches document-free KYC for users in India, Brazil, Nigeria and Indonesia

Sumsub has launched one click-KYC for users in India, Brazil, Nigeria and Indonesia in a move that allows businesses to instantly onboard over 2 billion users without requesting their ID documents.