AFM takes national measures to prohibit binary options and to restrict the marketing or sales of CFDs

Further to our earlier blog post, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) has taken national measures mirroring ESMA’s product intervention measures. These measures – included in two separate Decrees, one dealing with binary options and the other with contracts for differences (CFDs) – were published in the Dutch Government Gazette on 17 April 2019 and are effective as of 19 April 2019. The national product intervention measures prohibit binary options and restrict the marketing, distribution or sale of CFDs to retail investors in and from the Netherlands. According to the Decree prohibiting binary options, irrespective of whether it is traded on a trading venue, a binary option is a derivative that meets the following conditions: it must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event; it only provides for…

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