Regulatory Alerts2020-04-08
ESMA Opinion on the Product Intervention Measure Relating to Binary Options Proposed by the Magyar Nemzeti Bank of Hungary
The European Securities and Markets Authority (ESMA) approved Hungary's permanent ban on the marketing, distribution, and sale of binary options to retail investors. ESMA determined that the national measure is justified and proportionate, addressing persistent investor protection risks that emerged after ESMA's temporary EU-wide prohibition expired in July 2019. The authority further requires all other national competent authorities to implement equally stringent measures to prevent regulatory arbitrage and ensure uniform retail investor protection across the Union.
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