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Version status: Applicable | Document consolidation status: No known changes
Version date: 2 July 2018 - onwards
  Version 3 of 3    

Article 1 Temporary prohibition on binary options in respect of retail clients

1. The marketing, distribution or sale to retail clients of binary options is prohibited.

2. For the purposes of paragraph 1, irrespective of whether it is traded on a trading venue, a binary option is a derivative that meets the following conditions:

(a) it must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event;

(b) it only provides for payment at its close-out or expiry;

(c) its payment is limited to:

(i) a predetermined fixed amount or zero if the underlying of the derivative meets one or more predetermined conditions; and

(ii) a predetermined fixed amount or zero if the underlying of the derivative does not meet one or more predetermined conditions.

Comparing proposed amendment...