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.