mifid binary optionsLately, we have witnessed, in almost all EU member states,the rise in popularity of Binary Options Trading . In summary, Binary Options Trading brokers offer their traders a platform where they can trade binary options in various of underlying financial assets (e.g.  commodities, indices, currencies, stocks etc). These binary options are simple betting agreements over the assets price movement direction between the traders and the Binary Options broker and are settled in cash.

The question to be asked is: Does binary options offered by online Binary Options brokers fall under the authority of MiFID’s financial instruments and therefore these companies required to obtain an Investment license by MiFID?
The Answer
Mark (4) of Section C of Annex 1 to Directive 2004/39/EC details the financial instruments under by this regulation. This undoubtedly implies that all contracts relating to commodities, currencies ,etc that are settled in cash As the binary option are derivative contracts settled in cash, it suggests that binary options contracts fall under the definition of financial instruments. Therefore, brokers offering binary options trading contracts must be licensed as investment firms under MIFID’s authority. id90onlinecasinobaer id14top 3 online id100

Leave a Reply