The European Securities and Markets Authority said it has formally adopted a ban on the marketing, distribution and sale of binary options to retail customers and a limit on such activities with respect to contracts for difference.
The ban on binary options will apply from July 2, while the limit on contracts for differences will apply from Aug. 1.
The measures will remain in force for three months and could be extended for a further three months before the initial period ends, according to the regulator.
National securities authorities will monitor the impact of the measures to assess what next steps are required, ESMA Chairman Steven Maijoor said.
