Misplaced Pages

Banc De Binary: Difference between revisions

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.
Browse history interactively← Previous editNext edit →Content deleted Content addedVisualWikitext
Revision as of 18:22, 7 June 2014 view sourceCorporateM (talk | contribs)Extended confirmed users, File movers, Pending changes reviewers, Rollbackers40,012 edits →Awards: Removing promotional awards per ORGAWARDS← Previous edit Revision as of 18:24, 7 June 2014 view source CorporateM (talk | contribs)Extended confirmed users, File movers, Pending changes reviewers, Rollbackers40,012 edits →US regulatory issues: All original reporting using primary sources, press release, court documents, etc. Will find proper secondary sourcesNext edit →
Line 32: Line 32:


A 2013 investigation by the British ''Daily Mail'' newspaper journalist ] alleged that one client had $25,000 stolen from his bank account after signing up with them.<ref name="thisismoney.co.uk"/>{{dubious}} A 2013 investigation by the British ''Daily Mail'' newspaper journalist ] alleged that one client had $25,000 stolen from his bank account after signing up with them.<ref name="thisismoney.co.uk"/>{{dubious}}

==US regulatory issues==
Banc de Binary claimed to have an office in ] at ], but this was in fact a virtual office space with no significant physical presence.<ref name="seccomplaint">{{cite web|url=https://www.sec.gov/litigation/complaints/2013/comp-pr2013-103.pdf|title=SECURITIES AND EXCHANGE COMMISSION vs. BANC DE BINARY LTD, complaint|quote=Banc de Binary maintained a virtual office on Wall Street}}</ref> Trading and offering financial services to US consumers without gaining a license first from US regulators is illegal, as it would mean the client would have no protection. The company also claims on its site at its UK Companies House report<ref>{{cite web|url=http://wck2.companieshouse.gov.uk//companysearch?disp=1&frfsh=1382112367&#result |title=Companies House WebCheck |publisher=Wck2.companieshouse.gov.uk |date= |accessdate=2013-10-18}}</ref> to have an office at 1 King Street, EC2, in the ], but this, like its New York City address, is a virtual office with no physical presence.<ref>{{cite web|url=http://bookings.executiveoffices.co.uk/virtual-offices/1-king-street-ec2v-8au |title=Buy a 1 King Street, EC2V 8AU |publisher=Bookings.executiveoffices.co.uk |date= |accessdate=2013-10-18}}</ref> Banc de Binary's UK Companies House report says that they are based in Cyprus.

On 6 June 2013, Banc De Binary was charged by both the ] and the ] for alleged violations of US financial regulations. In the same press release the CFTC warned more generally of "fraudulent schemes involving binary options and their trading platforms".<ref name="cftc.gov">{{cite web
|url=http://www.cftc.gov/PressRoom/PressReleases/pr6602-13
|title=CFTC Charges "Prediction Market" Proprietor Banc de Binary with Violating the CFTC’s Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant
|accessdate=2013-10-16
|archiveurl=http://web.archive.org/web/20130819132836/http://www.cftc.gov/PressRoom/PressReleases/pr6602-13
|archivedate=2013-08-19
|deadurl=no}}</ref>
On 30 July 2013 the SEC obtained a preliminary injunction from U.S. District Court for the District of Nevada to prevent and freeze any further trading with US customers.<ref>{{cite web|url=http://www.sec.gov/litigation/litreleases/2013/lr22767.htm |title=Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013) |publisher=Sec.gov |date= |accessdate=2013-10-18}}</ref> Binary trading in the US is legal, but only if done through properly registered and regulated exchanges such as ].<ref>{{cite web|url=http://www.nadex.com/why-nadex/legal-for-us-residents.html |title=Binary Options Legal US |publisher=Nadex.com |date= |accessdate=2013-10-18}}</ref><ref name="FM">{{cite web|url=http://forexmagnates.com/banc-de-binary-gets-charged-by-the-cftc-investor-warning-also-issued-across-the-us/|title = Banc De Binary: Gets Charged by the CTFC| publisher = ForexMagnates | accessdate = 19 June 2013}}</ref><ref name="FxView">{{cite web|url=http://thefxview.com/2013/06/07/ctfc-files-civil-suit-against-banc-de-binary/|title = CTFC files civil suit against Banc De Binary| publisher = The Fx View | accessdate = 19 June 2013}}</ref> Both the CTFC and SEC working in conjunction with one another filed civil suits against the company, seeking disgorgement, financial penalties and other preliminary and permanent injunctions against the company.<ref name="SEC">{{cite web|url=http://www.sec.gov/news/press/2013/2013-103.htm|title = SEC Warns Investors About Binary Options and Charges Cyprus-Based Company with Selling Them Illegally in U.S. | publisher=Securities Exchange Commission | accessdate = 19 June 2013}}</ref><ref name="CTFC">{{cite web|url=http://www.cftc.gov/PressRoom/PressReleases/pr6602-13|title = CFTC Charges "Prediction Market" Proprietor Banc De Binary with Violating the CFTC’s Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant | accessdate = 19 June 2013}}</ref> In civil suits filed in Nevada, the SEC and CTFC allege that the company was offering off-exchange traded options to US customers and unlawfully solicited US customers to buy and sell options. The CTFC and SEC's suit also alleges that it did not limit its offerings to eligible contract participants, contrary to US regulations;<ref name="SEC">{{cite web|url=http://www.sec.gov/litigation/complaints/2013/comp-pr2013-103.pdf|title = SEC Full Complaint | accessdate = 19 June 2013}}</ref><ref>{{cite web|url=http://www.cftc.gov/PressRoom/PressReleases/pr6602-13% |title = CFTC Charges "Prediction Market" Proprietor Banc de Binary with Violating the CFTC’s Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant | accessdate = 19 June 2013}}</ref> a fully regulated broker would complete credit checks on customers to ensure that those with low finances did not trade with them. Amongst the allegations made by the SEC is that Banc de Binary induced people with limited funds, including one unemployed person with less than $1000,<ref>{{cite web|url=http://www.sec.gov/litigation/litreleases/2013/lr22718.htm |title=Banc de Binary Ltd. (Release No. LR-22718; June 7, 2013) |publisher=Sec.gov |date= |accessdate=2013-10-18}}</ref> to open accounts. In response to the US charges the company put out a statement that made no mention of its legal problems, but instead incorrectly implied that they were in negotiations and that they had voluntarily left the US market, when in fact the SEC had taken an injunction out to stop them:<ref name="thisismoney.co.uk"/><ref>. Sec.gov. Retrieved on 2013-10-16.</ref>

Banc de Binary have retained the services of Snell and Wilmer in Reno in relation to US charges. This followed an earlier hearing where in the absence of any representation from Banc de Binary, charges were filed via email and by post<ref name="justia"/>

In a message posted on its Web site,<ref>{{cite web|url=http://l.bbinary.com/Notice/ |title=Binary Options Trading Online with Banc De Binary |date= |accessdate=2013-08-17|archiveurl=http://archive.is/B9p6X|archivedate=2013-08-17}}</ref> the company stated that {{quote|1= Banc De Binary is voluntarily discontinuing its operations in the United States. The United States Commodity Futures Trading Commission and Securities and Exchange Commission have asserted that Banc De Binary is not permitted to offer its binary option products to U.S. residents without registering with those agencies. We are currently in discussions with the CFTC and SEC about these issues, but in the interim, we have discontinued all business with U.S. residents.}}


==Investor advisories== ==Investor advisories==

Revision as of 18:24, 7 June 2014

page is in the middle of an expansion or major revampingThis article or section is in a state of significant expansion or restructuring. You are welcome to assist in its construction by editing it as well. If this article or section has not been edited in several days, please remove this template.
If you are the editor who added this template and you are actively editing, please be sure to replace this template with {{in use}} during the active editing session. Click on the link for template parameters to use. This article was last edited by CorporateM (talk | contribs) 10 years ago. (Update timer)

Banc De Binary
Company typePrivate
Industrybinary options
Founded2009
Key peopleOren Laurent (CEO)
Websitewww.bancdebinary.com/

Banc De Binary is an Israeli-Cypriot based enterprise specializing in binary options (also known as fixed return options) on assets including commodities, stocks, indices, and foreign exchange. The company operates an online trading website through which customers can buy or sell binary ("call" or "put") options, predicting whether the price of a certain commodity will go up or down in a specific time period. Banc de Binary customers do not execute their trades via a regulated exchange, but are 'betting' against the firm itself, and the firm only profits if the client loses. Banc de Binary is an associate of Spot Option Exchange which sets the price of the option. The price of the option is not a market price, but is set by Spot Option Exchange itself.

The company has been charged with several offences by the CTFC and SEC, and trading with US customers has been frozen following an injunction on 1 August 2013. Charges filed on 7 August in the US stated that Banc de Binary "may be criminally liable under the federal RICO statute". Banc de Binary has refused to appear in court in the US for depositions. Within the European Union, the company is regulated by the Cyprus Securities and Exchange Commission (CySEC). On 25 May 2014 CySec announced that they had fined Banc de Binary 10,000 Euros after it had 'concealed material information in its request for authorization CIF submitted to the Commission in August 2012, namely concealed the existence of close links between it and another company'.

The Wall Street Journal described it as "a website that allows people to bet on the price of gold, oil or stocks"; the Daily Mail called it a "betting firm".

History

Origins

According to Banc De Binary's founder, the company was founded on January 15, 2009.

Regulation

but clients based in other countries would receive nothing if the company collapsed.

A 2013 investigation by the British Daily Mail newspaper journalist Tony Hetherington alleged that one client had $25,000 stolen from his bank account after signing up with them.

Investor advisories

As of October 2013, the company was rated "F" by the United States' Better Business Bureau because 31 complaints had been made against it, including 9 which were unanswered. The BBB report also offered the opinion that "he site essentially allows investors to gamble on the future price of something at a point in time."

It appears on the US Securities and Exchange Commission's "List of Unregistered Soliciting Entities That Have Been the Subject of Investor Complaints".

In Canada, it is listed on the Ontario Securities Commission's Investors Warning List of "companies that appear to be engaging in activities that may pose a risk to investors".

After receiving "at least one complaint from a Québec investor who traded through Banc de Binary's platform and was unable to recover his investment", the Autorité des marchés financiers (AMF) warned investors about the company. It noted that a bonus of 50% of the opening deposit is available, but customers who accept the bonus are not allowed to make withdrawals until they have made trades equal to 20 times their initial deposit. The AMF also pointed out that, due to the "all or nothing" nature of binary options, an investor who wrongly predicts market movement will lose his entire investment. Banc De Binary is not registered with the AMF. The AMF also, like the CFTC, included a more general warning about the risk of fraud in binary options trading in the same press release.

External links

References

  1. ^ Wright, Susan. "Banc De Binary CEO Oren Laurent Opens Up on Binary Options - with Banc De Binary". Investing.com. Retrieved 2013-11-11.
  2. Cite error: The named reference cftc.gov was invoked but never defined (see the help page).
  3. Ed (August 16, 2013). "Binary Options vs. Forex Trading". The FX View. Retrieved 2014-05-20.
  4. "Binary Options - A simple way to trade or just a SCAM?". Daytradingcoach. 2013-06-05. Retrieved 2014-05-20.
  5. "xchange | Order Execution Policy". Spotoptionexchange.com. Retrieved 2014-05-20.
  6. Cite error: The named reference cftc was invoked but never defined (see the help page).
  7. "Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013)". Sec.gov. Retrieved 2013-11-27.
  8. http://docs.justia.com/cases/federal/district-courts/nevada/nvdce/2:2013cv00993/94851/61/0.pdf
  9. "CySEC fines Banc de Binary €10,000 for concealing links between it and another company". LeapRate. 2014-05-26. Retrieved 2014-05-31.
  10. "Regulators Sue Prediction Site, Allege Illegal Options". Wall Street Journal. Archived from the original on 2013-11-15. Retrieved 11 June 2013.
  11. Tony Hetherington. "US watchdog takes 'bank' Banc de Binary to court...but Britain lets it in". Daily Mail. Archived from the original on 2013-11-15. Retrieved 2013-11-13.
  12. ^ Tony Hetherington. "US watchdog takes 'bank' Banc de Binary to court...but Britain lets it in". Daily Mail. Retrieved 2013-10-16.
  13. "BBB Business Review". Archived from the original on 2013-10-17. Factors that lowered the rating for Banc De Binary include: 31 complaints filed against business Failure to respond to 9 complaints filed against business {{cite web}}: line feed character in |quote= at position 60 (help)
  14. "Public Alert: Unregistered Soliciting Entities". Securities and Exchange Commission. Archived from the original on 2013-02-23. Retrieved 15 October 2012.
  15. "Investors Warning List". Ontario Securities Commission. Archived from the original on 2013-10-17. Retrieved 13 January 2013.
  16. "Binary options – AMF Cautions About Solicitations by Banc de Binary". Lautorite.qc.ca. Retrieved 2013-08-17.
Categories: