Adoption of CSSF Regulation No 19-05 on binary options

The CSSF adopted today CSSF Regulation N° 19-05 of 26 June 2019 that prohibits all firms acting in or from Luxembourg from marketing, distributing or selling binary options to retail clients from 1 July 2019.

The CSSF’s rules are in substance the same as the European Securities and Markets Authority’s (ESMA) existing EUwide temporary restrictions on binary options.

The CSSF confirms that all conditions under article 42 paragraph 2 of Regulation (EU) n° 600/2014 on markets in financial instruments are fulfilled. In particular, the CSSF shares the reasoning provided in ESMA’s measure on the existence of a significant investor protection concerns.

ESMA’s opinion on the proposed product intervention measures relating to binary options provides further details on the measures contained in the CSSF Regulation N° 19-05.

The CSSF’s rules are permanent and come into force on the 1st of July 2019.