Sources: French regulator looking at banning all derivatives advertising

Sources close to the matter say that France is looking at banning the advertising of all derivative products

France has long been a target market for some of the less credible companies marketing their products to French customers from outside the country by buying leads and employing French speaking sales people to extract deposits for binary options and retail FX trading, usually representing companies that do not have any form of regulation, and that use a closed system in which the FX brokerage is the counterparty and trades against the customer.

In April this year, FinanceFeeds reported that the Israeli Police had begun collaborating with the  Autorité des Marchés Financiers, the French financial services regulator, placing 15 directors of FX firms under criminal investigation. Since then AMF has taken steps toward the prohibition of all binary options firms from advertising to French customers.

Given that the French prosecutor said that the investigations ongoing regard to 50 cases, 500 victims, and a total sum of €105 million, then the average scam must have been worth €210,000. French economic analysts estimate that the volume ranges from €100,000 and €500,000 for each victim.

Sources with credible information on this matter have explained to FinanceFeeds this week that France’s authorities are going one step further than outlawing binary options advertising and picking off a few nefarious operators of unregulated bucket shops, but are apparently in the process of outlawing all derivatives advertising altogether.

This means a blanket national ban on all OTC asset classes being advertised across any media by any company from any nation.

Although our sources consider that this will encompass all asset classes that are widely traded on an over the counter basis, some sources that spoke to FinanceFeeds believe that such legislation, if it goes ahead, will exclude covered warrants but will include everything else.

One particular source, a very experienced and knowledgeable senior industry figure in Europe, explained to FinanceFeeds today “Everyone, from the established names to bucket shops will be subject to this ban. It is currently hard to know whether it covers every method of sales, as it may apply to online advertising only, however regarding the potential exclusion of warrants,although the pricing is horrifically obscure, Societe Generale owns the market in France.”

Opinions across the industry vary on the rationale behind any such proposed legislation, some believing that this is a step toward putting an end to the targeting of French customers by unregulated firms that make their money from pocketing client deposits, whilst others believe that it may be a method of protecting Societe Generale (owned by the French government) and ensuring it maintains its market share in covered warrants and prevents any overseas firms gaining access to the market.


Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading


DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.