As part of the continuing efforts of MAP S.Platis to develop, support and assist with the interpretation of the regulatory framework in which EU Investment Firms operate, the firm’s compliance teams initialised research, consultation and discussion with the European Authorities (CESR, ESMA as well as the European Commission) with respect to OTC Binary Options.
Following our efforts which lasted more than 18 months, we have secured an official answer at the European Union level as to whether Binary Options Trading Companies should be regulated under MiFID.
Specifically, it has been confirmed to our compliance teams that Binary Options, such as the ones apparently being offered by electronic Binary Options Platforms, seem to meet the definition of financial instruments under MiFID and therefore, companies offering Investment Services and Activities with respect to Binary Options should be authorized as Investment Firms under MiFID.
At the same time, we note that within the European Union, the implementation and the monitoring of the implementation of MiFID is the responsibility of each EU Home State Regulatory Authority. Therefore, each of these shall have to ultimately decide on the way of the implementation of this EU decision/interpretation at the level of each EU State. We have initialized such a communication in this respect.
