Document ID: chunk:federal_register_of_legislation:F2021L00421:body:0:p1
Version: federal_register_of_legislation:F2021L00421
Segment Type: other
Provision Reference: 
Character Range: 0–3099

ASIC Corporations (Product Intervention Order—Binary Options) Instrument 2021/240
I, Oliver Harvey, delegate of the Australian Securities and Investments Commission, being satisfied that binary options (as defined in the following legislative instrument) are a class of financial products that:
(a)     is available for acquisition by issue to persons as retail clients; and
(b)     has resulted in and is likely to result in significant detriment to retail clients;
make the following legislative instrument.

Date 1 April 2021

Oliver Harvey

Contents

Part 1—Preliminary
1 Name of legislative instrument
2 Commencement
3 Authority
4 Interpretation
Part 2—Order
5 Prohibitions on dealing in binary options in relation to retail clients
6 Binary option providers to notify retail clients

Part 1—Preliminary

1 Name of legislative instrument
This is the ASIC Corporations (Product Intervention Order—Binary Options) Instrument 2021/240.

2 Commencement
This instrument commences on the day after it is registered on the Federal Register of Legislation.
Note: The register may be accessed at www.legislation.gov.au.

3 Authority
This instrument is made under subsection 1023D(3) of the Corporations Act 2001.

4 Interpretation
(1) In this instrument:
Act means the Corporations Act 2001.
binary option means:
           (a) an arrangement that is an over-the-counter derivative in relation to which the following apply:
              (i) the parties to the arrangement are:
                  (A) a person (binary option provider) who carries on a business of offering to issue, and issuing, derivatives of that type to other persons (holders); and
                  (B) a holder;
              (ii) an amount is paid or payable by the holder to the binary option provider in consideration for the binary option provider entering into the arrangement;
              (iii)  under the arrangement, a condition (condition) is specified in relation to the value or amount of any of the following at or before a specified time (expiry time):
                  (A) an asset (including a financial product or a cryptoasset);
                  (B) a rate (including an interest rate or an exchange rate);
                  (C) an index;
                  (D) a commodity;
              Note:  For example, the condition may be that the value of a share exceeds a specified value at a specified time. Alternatively, the condition may be that the value of a share exceeds a specified value at or before a specified time.
              (iv) if the condition is satisfied and the arrangement has not been terminated earlier, a predetermined fixed amount, or no amount, is payable by the binary option provider to the holder;
              (v) if, at the expiry time, the condition has not been satisfied and the arrangement has not been terminated earlier, a predetermined fixed amount, or no amount, is payable by the binary option provider to the holder; and
           (b) without limiting the scope of paragraph (a), includes such an arrangement where:
              (i) the holder has, or may have,