Is Binary Options Trading Legal in Italy? (CONSOB Status)

The Commissione Nazionale per le Società e la Borsa (CONSOB) adopted resolution number 20975 on 20 June 2019 prohibiting the marketing, distribution and sale of binary options to retail clients in or from Italy. The prohibition applies from 2 July 2019 until any revocation, where the conditions in Article 42(6) MiFIR are met.

What the Rules Say

CONSOB resolution number 20975 of 20 June 2019 prohibits the marketing, distribution or sale in Italy or from Italy of binary options to retail clients.

CONSOB describes the measure as a permanent prohibition in the text of its resolution.

The resolution enters into force the day following its publication in the Official Gazette and applies from 2 July 2019 until any revocation, where the conditions set out in Article 42(6) MiFIR are met.

CONSOB reiterated in a press release dated 21 June 2019 that the prohibition on marketing, distribution or sale to retail investors in Italy or from Italy applies from 2 July 2019 until any revocation, where the conditions in Article 42(6) MiFIR are met.

Scope and Exceptions

Under Article 3(3) of CONSOB resolution number 20975, the prohibition does not apply to:

1. A binary option for which the lower of the two predetermined fixed amounts is at least equal to the total payment made by a retail client for the binary option, including commissions, transaction fees and other related expenses.
2. A binary option that meets the following conditions:
   • A period of at least 90 calendar days between issue and expiry.
   • Publication of a prospectus drawn up and approved in accordance with Directive 2003/71/EC.
   • The option does not expose the provider to market risk during its term, and neither the provider nor any entity in its group obtains profits or suffers losses from the binary option, other than previously disclosed commissions, transaction fees and related expenses.

How to Check a Firm

Check the official register of the national regulator, the Commissione Nazionale per le Società e la Borsa (CONSOB).

If a firm does not appear on the relevant register, treat that as a reason to stop and check further before sending money.

See our EU page for the ESMA background and Germany as another national example.

Frequently Asked Questions

What does CONSOB resolution number 20975 prohibit regarding binary options?

CONSOB resolution number 20975 of 20 June 2019 prohibits the marketing, distribution or sale in Italy or from Italy of binary options to retail clients, a measure CONSOB describes as permanent.

When did the Italian prohibition take effect and under what conditions could it end?

The CONSOB resolution enters into force the day after its publication in the Official Gazette. CONSOB's press release of 21 June 2019 states that the prohibition applies from 2 July 2019 until any revocation, where the conditions in Article 42(6) MiFIR are met.

What exceptions exist under Article 3(3) of CONSOB's resolution?

The ban excludes binary options where the lower fixed payout is at least equal to the retail client's total payment including fees, and options with a term of at least 90 calendar days, an approved prospectus under Directive 2003/71/EC, and zero provider market risk with no group profits or losses beyond disclosed costs.

Does this page address individual liability?

This page summarises what the regulators' published rules say. It does not address whether an individual could face liability. Seek independent legal advice.

Sources and Official References

• CONSOB Delibera n. 20975 (20 June 2019): https://www.consob.it/web/area-pubblica/-/delibera-n.-20975
• CONSOB Press Release (21 June 2019): https://www.consob.it/documents/1912911/1977669/comunicato_20190621.pdf/cd053767-6504-ac5d-7da2-88a083226764

This page summarises what the regulators' published rules say. It does not address whether an individual could face liability. Seek independent legal advice.