The Effect of ESMA's Product Intervention on Binary Options and Contracts for Differences Markets

This dissertation examines the viability of the current legal framework in governing contracts for differences (CFDs) and binary options (BOs) retail markets in the European Securities and Markets Authority (ESMA) region. The core of this research analyses the structure of contracts for difference and binary options, ESMA's product intervention measures and their impact on brokers, the divergence of national product interventions from ESMA's measures, as well as the issue with the temporary nature of pan-European interventions. I conclude that the current legal framework is ineffective in avoiding excessive investor detriment in retail CFD markets, since the temporality of ESMA's measures causes regulatory arbitrage and faces constitutional constraints from Member States.