The MFSA has issued two Consultation Documents on the implementation of national product intervention measures in relation with binary options and contracts for difference ('CFDs'). In 2018, ESMA formally adopted product intervention measures on binary options and CFDs which is essentially a prohibition (ban) on the marketing, distribution or sale of binary options and CFDs to retail investors. Since then, ESMA has extended this measure for three consecutive times.
In line with this above, the MFSA is proposing to adopt product intervention measures with respect to binary options and CFDs. The proposed measure would essentially mirror the temporary measures from ESMA referred to above and which are currently active throughout the European Union. The measures proposed to be taken by the MFSA in this regard, would be applicable to investment firms based in Malta and which market, distribute or sell binary options and/or CFDs to retail clients, as well as to investment firms from other EU Member States marketing, distributing or selling such instruments in Malta either through the establishment of a branch in Malta or through the provision of services on a cross border basis.