FX, binary options ads still dominate France’s investment advertising landscape

Maria Nikolova

In the face of the Sapin 2 law, the number of advertisements about Forex and binary options remained substantial in the first nine months of 2017, according to AMF.

France’s financial markets authority AMF has been actively touting changes to rules for digital advertising of investment products, including a ban on digital advertising of high-risk financial products like binary options. The ban is a part of the Sapin 2 law.

In the face of the restrictions, the latest data from AMF show that 20% of the investment advertising online during the first nine months of 2017 was about “very speculative” products such as Forex and binary options. No other investment product type accounts for such a big chunk of the advertising market.

The regulator notes that although the percentage of such ads has dropped from the equivalent period in 2016 (back then, it was 44%), the number of FX and binary options ads is still high, especially if we consider the Sapin 2 law.

AMF has confirmed that some brokers, many of which are Cypriot, continue to violate the Sapin 2 law in France. This was stated by Robert Ophèle, Chairman of France’s AMF, in October this year. 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 contacted the companies that violate the law, demanding that they withdraw their ads – the majority have complied with the regulatory demands. However, certain Cypriot companies have shown reluctance to comply with the law, the AMF Chairman has confirmed. Instead of punishing the violators, the French regulator has decided to wait for the coming into effect of the new MIFID II and MIFIR rules.

Read this next

Digital Assets

Zumo launches B2B ‘Crypto-as-a-Service’ solution for brokers

The new product, Zumo Enterprise, also features an embedded ESG and net zero strategy.

Technology

Top Tools to Add to Your Trading Platform to Delight and Retain Traders

The online trading boom that started during the pandemic-led lockdowns is abating. This is in part due to sustained market volatility which seems to be discouraging new investors. For example, day trading volumes in the US for retail investors declined in the last 2 quarters of 2021.  

Technology

Embedded finance platform Alviere taps Marqeta for branded card issuance in Europe and UK

Alviere has recently raised $70 million to fuel the ongoing expansion across the European region and the United Kingdom.

Retail FX

Overcharts partners with dxFeed for CME Group Market Depth

“More and more traders are using Market Depth while conducting volume analysis. Its primary function is to help traders identify potential support and resistance levels.”

Digital Assets

CoinGecko expands collaboration with CER.live security rating

CoinGecko, one of the earliest crypto data aggregators, has integrated the security score data from the CER.live rating. The trust assessments given to crypto projects will be integrated into their pages on CoinGecko website to draw users’ attention to the importance of security.

Metaverse Gaming NFT

Klaytn taps Parity Technologies to build infrastructure for Klaytn-Substrate

Klaytn has initiated a collaboration with blockchain infrastructure company Parity Technologies to strengthen its tech stack and meet the demands of enterprises looking to harness the crypto technology.

Retail FX

US Retail FX brokers suffer steep fall in client deposits, Trading.com racked up $46K

Retail FX deposits at US brokerages, which have been struggling to eke out a profit in a strict regulatory environment, dropped in March 2022 by $35 million, CFTC data showed.

Retail FX

eToro supports Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI)

Israeli social trading network eToro has added support for trading three new tokens. Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI) are the next coins to join eToro’s list of featured digital assets.

Executive Moves

LiquidityBook hires Fintech veteran Jonathan Cross to lead EMEA business

LiquidityBook, a provider of FIX and OMS trading solutions for both the buy and sell-side, has added Jonathan Cross to its business team for the EMEA region.

<