In a press release, the financial market authority of Austria informed that introducing a ban on the sale of binary options to retail investors. It also restricts the distribution of contracts for difference to this massive.
By Phillip Horch
28. May 2019BTC$8.653,00 -1.37%part Facebook Twitter LinkedIn xing mail
The Austrian financial market authority FMA has prohibited by regulation the marketing, distribution and sale of binary options (“Binary Options”) to private customers, as well as the marketing, distribution and sale of Financial contracts for Difference (“Contracts for Differences, CFDs) to retail customers massively restricted. Are also affected Bitcoin & co.
The authority wants to ensure according to a press release by the European securities and markets authority ESMA (European Securities and Markets Authority) since 2. July 2017 (binary options) as well as 1. August 2018 (CFD) imposed Europe-wide, time but temporary measures in Austria are to continue to apply seamlessly.
Austria, leverage limits, in the case of CFDs for Bitcoin & co. leads a
The restrictions in the distribution of contracts for difference (CFDs) relating to leverage limits, of a security in connection with a liquidation protection, a negative balance protection and the prohibition of incentive programs. In addition, advertising must include, and sales materials to CFDs – to-understand and clear risk warnings. The Executive Board of the FMA, Helmut Ettl and Klaus Kumpfmüller:
These measures are intended to protect the interests of small investors for you to unpredictable risks and losses. The application of these new legal possibilities, has already proven itself under the ESMA Regime, we continue to lead the protection of small investors on the national level.
this “FMA-product intervention regulation” (FMA-PIV), which regulates these measures for the protection of the private investors in more Detail, entered into force on 15. May and is on binary options as well as financial contracts for difference applicable from 30. May, in or from Austria, marketed, distributed, or sold.
provider of CFDs for Bitcoin & co. must ensure, according to the regulation, a Security Deposit in the amount of 50 per cent.
In Germany, has adopted the Federal financial services Supervisory authority in the previous November, a corresponding law.
About binary options and contracts for differences
Binary (also digital) options, futures, which are bets on the price, the price or the value of an underlying asset will be completed. It is a short-term form of investment with cash settlement, which can already end after only a few minutes. The derivatives are, moreover, easy to use and enjoyed in the past few years, a growing popularity. Binary options are considered to be high risk assets.
A contract for difference, however, is a Form of “Total Return Swaps”. Here, two parties agree to exchange an underlying asset in return for interest payments during the term. He had the price development of the underlying base value.
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