Insider Business Official end to binary options

Official end to binary options

The Cyprus Securities and Exchange Commission has issued a directive banning binary options following instructions by the European Securities and Markets Authority (ESMA).

ESMA, the EU securities markets’ regulator, did not renew the temporary prohibition of the marketing, distribution or sale of binary options to retail clients in the European Union. The temporary prohibition expired on July 1.

ESMA also made clear that they will continue to monitor activities in relation to these and other related speculative products to determine whether any other EU-wide measures may be needed.

CSEC chairperson Demetra Kalogerou explained that ESMA’s interventions are part of legislation of EU countries in accordance with the MiFID II directive in a bid to protect retail clients within the Union.

Over the past years, a number of companies based in Cyprus were offering binary options to non-professional investors mainly from other EU countries. These long-term products have been evaluated as having more of a speculative rather than of an investment nature.

Following the ESMA measures, there are no companies offering such products in Cyprus today, according to Kalogerou. Some have simply shut down and others opted to offer CFDs and related options instead.

The proposal by ESMA to apply a 30:1 leverage limit for CFDs is expected to also become national law within this month. Before ESMA’s intervention the leverage limit was 100:1.

 

Read more:

https://in-cyprus.com/cysec-e25-5m-in-fines-in-last-six-years/

Top Stories

Foreign experts for the cataract patients

The police may call foreign experts in relation to the serious incident with the eight people who were operated for cataract and then had...

Metropolitan of Paphos in self-isolation

Metropolitan of Paphos Georgios is in self-isolation due to the fact that he has been in contact with a COVID-19 confirmed case. The Metropolitan...

13th month salary not certain in private sector

Due to the COVID-19 pandemic many companies in the private sector are unable to pay 13th month salary to their employees who are contacting...

Fewer Cypriots now going abroad to work

Fewer Cypriots now go overseas for work while the domestic market is flooded with more and more migrants seeking a job and a better...

Health Minister says General Healthcare System upgraded with new services

Cyprus' Minister of Health Constantinos Ioannou has pointed out that yet another significant step has been taken to enrich and upgrade the healthcare services,...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...