Asic ban binary options

Asic ban binary options

22/8/ · MR ASIC proposes ban on the sale of binary options to retail clients, and restrictions on the sale of CFDs ASIC has released a consultation paper Product intervention: OTC binary options and CFDs (CP ) on proposals to use its product intervention power to address significant detriment to retail clients resulting from over-the-counter (OTC) binary options and CFDs MR ASIC bans the sale of binary options to retail 1/4/ · Binary options are a risky form of derivatives which often contain an “all or nothing” structure that give investors a 50 per cent chance of losing their entire investment amount and Author: Aleks Vickovich

ASIC media releases are point-in-time statements. Please note the date of issue and use the internal search function on the site to check for other media releases on the same or related matters, asic ban binary options.

ASIC has released a consultation paper Product intervention: OTC binary options and CFDs CP on proposals to use its product intervention power to address significant detriment to retail clients resulting from over-the-counter OTC binary options and CFDs.

A binary option is an 'all or nothing' bet on the outcome of an event. A CFD is a contract on the difference between the opening and closing price of an asset. ASIC is concerned that retail investors have suffered, and are likely in future to suffer, significant detriment from binary options and CFDs.

A review REP conducted by ASIC in found that:. Complex product features, such as the high leverage offered in CFDs—as high as to-1 for foreign exchange CFDs—or the high likelihood of cumulative losses inherent in binary options, have contributed to retail clients' financial losses and can often be misaligned with their needs, expectations and understanding.

ASIC Commissioner Cathie Armour said, 'For many years ASIC has taken strong action to protect consumers of binary options and CFDs, using the range of regulatory tools available to us. However, asic ban binary options, we are concerned that consumers continue to suffer significant harm from trading these products, asic ban binary options.

We asic ban binary options binary options provide no meaningful investment or economic use, and have product characteristics similar to gambling products,' Commissioner Armour said. Under Pt 7. On 4 April ASIC published a media release welcoming the approval of new laws to protect financial service consumers refer: MR. ASIC also published a media release on 26 June confirming that it initiated consultation on the administration of its new product intervention power refer: MR.

ASIC has taken strong action, and applied a range of regulatory tools, to address concerns in relation to binary options and CFDs. These include:. However, ASIC considers retail clients continue to suffer significant detriment from these products. Find a media release. For journalists. Follow us on Twitter asicmedia. You are here: Home About ASIC News centre Find a media release MR ASIC proposes ban on the sale of binary options to retail clients, and restrictions on the sale of Asic ban binary options. Find a media release Speeches Articles Key matters For journalists More information.

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1/4/ · ASIC has made a product intervention order banning the issue and distribution of binary options to retail clients. The ban will take effect from Monday 3 May after ASIC found that binary options have resulted in and are likely to result in significant detriment to retail clients 1/4/ · Binary options are a risky form of derivatives which often contain an “all or nothing” structure that give investors a 50 per cent chance of losing their entire investment amount and Author: Aleks Vickovich MR ASIC bans the sale of binary options to retail