ESMA says prediction market event contracts qualify as binary options under MiFID II, reinforcing existing EU retail bans on these products amid surging

ESMA says prediction market event contracts qualify as binary options under MiFID II, reinforcing existing EU retail bans on these products amid surging

ESMA warned that many prediction market event contracts may already be prohibited for EU retail investors under existing securities rules, rather than requiring new regulation.

The European Securities and Markets Authority (ESMA), the EU's securities regulator, said in a statement that many prediction market event contracts may…

Regulierungsbehörden betonten, dass bei der Bewertung der Einhaltung der Vorschriften die tatsächliche Funktion eines Produkts als Derivat wichtiger ist als dessen kommerzieller…

Prediction Markets could face regulatory scrutiny, ESMA stated. Discover how these contracts might fall under current derivatives regulations.