The European Securities and Markets Authority (ESMA) has decided to renew its prohibition on the marketing, distribution, or sale of binary options to retail clients, the watchdog announced Friday.
ESMA first adopted the temporary ban in July, and extended it in October.
It will renew the ban for another three months, starting Jan. 2, 2019, ESMA says.
In announcing the move, ESMA says it has “carefully considered” the need to extend its existing ban, and has determined that there remains a threat to investors from these products.
“A significant investor protection concern related to the offer of binary options to retail clients continues to exist,” ESMA says in a news release.
Last year, the Canadian Securities Administrators formally adopted a ban on binary options for retail investors, amid its own concerns about investor protection.