EU extends ban on sale of 'binary' options to retail customers

LONDON (Reuters) - The European Union's securities watchdog has renewed a ban on the sale of 'binary' options to retail customers for a further three months starting Oct. 2, saying there are still concerns about the risks of the products.

The European Securities and Markets Authority (ESMA) started the ban on July 2 amid concern about losses made on the options, which give an investor exposure to price movements in securities without actually owning the underlying assets.

ESMA said certain longer-dated binary options would be excluded from the renewed ban.

(Reporting by Lawrence White; Edited by Mark Potter)