Is Binary Options Trading Legal in Spain? (CNMV Status)

The Comisión Nacional del Mercado de Valores (CNMV) issued a resolution on 27 June 2019 prohibiting the marketing, distribution and sale of binary options to retail clients. Entering into force on 2 July 2019, the measures continue to apply in Spain while the CNMV does not find market condition changes allowing repeal.

What the Rules Say

The Comisión Nacional del Mercado de Valores (CNMV) resolution of 27 June 2019 prohibits the marketing, distribution or sale of binary options to retail clients under Article 1.1.

Under Article 6, the resolution enters into force, once published in the Official State Gazette, on the day after the expiry of the ESMA intervention measures. The binary options chapter accordingly entered into force on 2 July 2019.

Article 6 provides that the measures continue to apply in Spanish jurisdiction while the CNMV does not find that changes in market conditions allow their repeal.

Scope and Exceptions

Under Article 1.3, the CNMV 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 to acquire the binary option, including any commissions, transaction costs and other related costs.
2. A binary option that meets the following conditions:
   • The period from issue to maturity is equal to or greater than 90 calendar days.
   • A prospectus prepared and approved under Directive 2003/71/EC is publicly available.
   • The binary option does not expose the provider to market risk until maturity, and neither the provider nor any entity in its group records profits or losses from the option other than commissions, transaction costs or related expenses disclosed to the client in advance.

How to Check a Firm

Check the official register of the national regulator, the Comisión Nacional del Mercado de Valores (CNMV).

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 the CNMV resolution prohibit regarding binary options?

Article 1.1 of the CNMV resolution of 27 June 2019 prohibits the marketing, distribution or sale of binary options to retail clients.

When did the Spanish prohibition take effect and how long does it remain active?

Under Article 6, the binary options chapter entered into force on 2 July 2019, following the expiry of the ESMA intervention measures, and continues to apply while the CNMV does not find that market condition changes allow repeal.

What exceptions are specified under Article 1.3 of the resolution?

The prohibition excludes binary options where the lower predetermined amount equals or exceeds the total payment by the retail client including fees, and options with a term of at least 90 calendar days, a publicly available 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

• CNMV Resolution (27 June 2019): https://www.boe.es/eli/es/res/2019/06/27/(1)

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