| Revision as of 20:07, 8 June 2014 view sourceOrangemike (talk | contribs)Autopatrolled, Administrators126,287 edits restoring longest version with the expectation that people will edit it more cautiously rather than doing wholesale slash and burn← Previous edit | Revision as of 20:09, 8 June 2014 view source CorporateM (talk | contribs)Extended confirmed users, File movers, Pending changes reviewers, Rollbackers40,012 edits It was not a wholesale slash and burn, but more than 2 hours culling through all the junk sources and finding good onesNext edit → | ||
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| {{Orphan|date=May 2014}} | |||
| {{npov}} | |||
| {{pp-semi-sock|expiry=18 October 2014|small=yes}} | {{pp-semi-sock|expiry=18 October 2014|small=yes}} | ||
| {{Infobox company | {{Infobox company | ||
| | name = Banc De Binary | | name = Banc De Binary | ||
| | logo = |
| logo =File:Banc de Binary logo.gif | ||
| | caption = | | caption = | ||
| | type = Private | | type = Private | ||
| | foundation = 2009 | | foundation = 2009 | ||
| | location = | | location = | ||
| | key_people = Oren Shabat Laurent<ref name=amend>{{cite web|title=CFTC Amends Complaint against Banc de Binary, Ltd. to Charge Three Affiliated Corporate Entities with Violating the CFTC’s Ban on Trading Options Contracts Off-Exchange|url=http://www.cftc.gov/PressRoom/PressReleases/pr6923-14|website=www.cftc.gov|publisher=U.S. government|accessdate=8 June 2014}}</ref> | |||
| | key_people = Oren Laurent (CEO)<ref name="InvestingInterview" /><br> Abraham 'Abe' Cofnas, Head Analyst;<ref>{{cite web|url=http://www.europeanceo.com/business-and-management/2013/01/the-next-generation-of-financier/ |title=The next generation of financier |publisher=European CEO |date=2013-01-27 |accessdate=2013-11-11}}</ref> Sarah Fenwick, Director of Communications;<ref>{{cite web|url=http://www.financialmirror.com/news-details.php?nid=31168|title=Banc De Binary tops 200,000 new client accounts|date=2013-10-08|quote=The communications team for Cyprus is led by Sarah Fenwick who is the company's Director of Communications.}}</ref> Roy Ogen, General Manager of the Cyprus Headquarters <ref>{{cite news|url=http://www.goldnews.com.cy/en/financial-services/banc-de-binary--changing-the-face-of-online-trading |title=Banc De Binary: Changing the Face of Online Trading |publisher=Goldnews |author=Effy Pafitis |date=February 20, 2014 |accessdate=2014-05-20}}</ref> | |||
| | industry = ] | | industry = ] | ||
| | homepage = | | homepage = | ||
| }} | }} | ||
| '''Banc De Binary''' is a ] trading company headquartered in Cyprus and Israel which was enjoined by a U.S. ] in 2013 from offering securities for sale or acting as a ] in the US.<ref name=enjoin>{{cite web|title=Securities and Exchange Commission v. Banc de Binary Ltd., Civil Action No. 2:13-CV-00993-RCJ-VCF <br>SEC Obtains Preliminary Injunction in Binary Options Case|url=http://www.sec.gov/litigation/litreleases/2013/lr22767.htm|publisher=U.S. Securities and Exchange Commision|accessdate=8 June 2014|date=1 August, 2013}}</ref><ref name="one"/> Investors using its service bet on future prices of gold, oil, stocks or market indexes and are paid a return if their predictions come true within a set amount of time.<ref name="one">{{cite news|newspaper=Financial Times|date=June 7, 2013|title=US launches civil action against Banc de Binary|first1=Gregory|last1=Meyer|first2=Arash|last2=Massoudi |url=http://www.ft.com/intl/cms/s/0/f507568e-ced9-11e2-8e16-00144feab7de.html?siteedition=intl#axzz33htcsGvs}}</ref><ref>{{cite web|url=http://online.wsj.com/article/SB10001424127887324798904578529241482337164.html|title = Regulators Sue Prediction Site, Allege Illegal Options|publisher = Wall Street Journal |accessdate = 11 June 2013|archiveurl=http://www.webcitation.org/6L9hopyb5|archivedate=2013-11-15|quote=Banc de Binary offered U.S. customers options contracts on wheat, gold, currencies and stock indexes through its website, according to the CFTC complaint. The site essentially allows investors to gamble on the future price of something at a point in time.}}</ref> The company was founded on January 15, 2009.<ref name="InvestingInterview">{{cite web|url=http://www.investing.com/brokers/banc-de-binary/interviews/banc-de-binary-ceo-oren-laurent-opens-up-on-binary-options-169615 |title=Banc De Binary CEO Oren Laurent Opens Up on Binary Options - with Banc De Binary |publisher=] |date= |accessdate=2013-11-11|first=Susan |last=Wright }}</ref> | |||
| '''Banc De Binary''', formerly known as '''BO Systems Limited''' and also known as '''BDB Services Limited''' and | |||
| '''ET Binary Options Ltd.''',<ref name="cftc">{{cite web| | |||
| url=http://www.cftc.gov/ucm/groups/public/@lrenforcementactions/documents/legalpleading/enfbanccomplaint060513.pdf |title=U.S. Commodity Futures Trading Commission v. Banc de Binary Ltd. (a/k/a E.T. Binary Options Ltd.), Complaint for Injunctive and Other Equitable Relief and for Civil Monetary Penalties Under the Commodity Exchange Act and Commission Regulations| | |||
| publisher=] | | |||
| date=June 6, 2013 }}</ref> is an Israeli-Cypriot based enterprise specializing in ] | |||
| (also known as fixed return options) on assets including ], ], ], and ]. | |||
| 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.<ref name = "cftc.gov" /> 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.<ref>{{cite news|author=Ed |url=http://thefxview.com/2013/08/16/binary-options-vs-forex-trading/ |title=Binary Options vs. Forex Trading |publisher=The FX View |date=August 16, 2013 |accessdate=2014-05-20}}</ref><ref>{{cite web|url=http://www.daytradingcoach.com/binary-options.html |title=Binary Options - A simple way to trade or just a SCAM? |publisher=Daytradingcoach |date=2013-06-05 |accessdate=2014-05-20}}</ref> 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.<ref>{{cite web|url=http://www.spotoptionexchange.com/order-execution-policy/ |title=xchange | Order Execution Policy |publisher=Spotoptionexchange.com |accessdate=2014-05-20}}</ref> | |||
| 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.<ref name="cftc"/><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=2013-11-27}}</ref> 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.<ref name="justia">http://docs.justia.com/cases/federal/district-courts/nevada/nvdce/2:2013cv00993/94851/61/0.pdf</ref> Within the European Union, the company is regulated by the ] (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'.<ref>{{cite news|url=http://leaprate.com/2014/05/22373/cysec-fines-banc-de-binary-e10000-for-concealing-links-between-it-and-another-company/ |title=CySEC fines Banc de Binary €10,000 for concealing links between it and another company |publisher=LeapRate |date=2014-05-26 |accessdate=2014-05-31}}</ref> | |||
| The '']'' described it as "a website that allows people to bet on the price of gold, oil or stocks";<ref name = "WSJ">{{cite web|url=http://online.wsj.com/article/SB10001424127887324798904578529241482337164.html|title = Regulators Sue Prediction Site, Allege Illegal Options|publisher = Wall Street Journal |accessdate = 11 June 2013|archiveurl=http://www.webcitation.org/6L9hopyb5|archivedate=2013-11-15}}</ref> the '']'' called it a "betting firm".<ref>{{cite news|author=] |url=http://www.thisismoney.co.uk/money/investing/article-2407941/TONY-HETHERINGTON-US-watchdog-takes-bank-Banc-Binary-court--Britain-lets-in.html |title=US watchdog takes 'bank' Banc de Binary to court...but Britain lets it in |publisher=] |date= |accessdate=2013-11-13|archiveurl=http://www.webcitation.org/query?url=http%3A%2F%2Fwww.thisismoney.co.uk%2Fmoney%2Finvesting%2Farticle-2407941%2FTONY-HETHERINGTON-US-watchdog-takes-bank-Banc-Binary-court--Britain-lets-in.html&date=2013-11-15|archivedate=2013-11-15}}</ref> | |||
| ==History== | |||
| In an interview the company's founder stated that the firm was founded on the 15th Jan 2009,<ref name="InvestingInterview">{{cite web|url=http://www.investing.com/brokers/banc-de-binary/interviews/banc-de-binary-ceo-oren-laurent-opens-up-on-binary-options-169615 |title=Banc De Binary CEO Oren Laurent Opens Up on Binary Options - with Banc De Binary |publisher=] |date= |accessdate=2013-11-11}}</ref> and that before, he had worked at "NAF Hedge Funds" and "Infinity Private Investment Funds", which he described as hedge funds in New York.<ref>{{cite web|url=http://orenlaurent.net | |||
| |title=Oren Laurent, Financial Services | |||
| |accessdate=2013-10-24 | |||
| |archiveurl=http://web.archive.org/web/20130916114539/http://orenlaurent.net | |||
| |archivedate=2013-09-16 | |||
| |quote=He obtained employment in various retail Wall Street Firms and then worked in NAF Hedge Funds. He later transferred to Infinity Private Investment Funds. | |||
| }}</ref> The company also claims to have been founded in Seychelles in 2008,<ref>{{cite web|url=http://www.mybinaryoption.com/banc-de-binary/ |title=Banc De Binary |publisher=Mybinaryoption.com |date=2013-09-04 |accessdate=2013-11-27}}</ref> | |||
| In an interview, the company's founder claimed that by June 2011 the company had around 20,000 client accounts,<ref name=IU>{{cite web |url=http://investmentunderground.com/6882/featured/banc-de-binary-ceo-oren-laurent-opens-up-on-binary-options/ | |||
| |date=27 May 2013 | |||
| |first=Susan | |||
| |last=Wright | |||
| |title=Banc De Binary CEO Oren Laurent Opens Up on Binary Options | |||
| |publisher= Investment Underground | |||
| |accessdate=Aug 11, 2013 | |||
| |archiveurl= http://web.archive.org/web/20130808121044/http://investmentunderground.com/6882/featured/banc-de-binary-ceo-oren-laurent-opens-up-on-binary-options/ | |||
| |archivedate=2013-08-08 | |||
| |quote=Our projections were for 10,000 client accounts by the end of 2011. We'd doubled that number by June. | |||
| }}</ref>{{verify credibility|date=November 2013}} and in an open letter published by August 2012, he claimed that number was then 200,000.<ref name="BOD1">{{cite web |url=http://www.binaryoptionsdaily.com/2012/08/27/banc-de-binarys-ceo-oren-laurent-expresses-sincere-thanks/|title=Banc De Binary’s CEO Oren Laurent Expresses Sincere Thanks |publisher= BinaryOptionsDaily.com |accessdate=Aug 11, 2013}}</ref> Banc de Binary have stated that it "is a small company, with approximately 60 employees".<ref name="justia">http://docs.justia.com/cases/federal/district-courts/nevada/nvdce/2:2013cv00993/94851/61/0.pdf</ref> | |||
| An article in the Independent on Sunday newspaper described it as a "leading City trading firm", although it does not have an office in the City of London, and the address the company gives is a virtual office space with no physical presence .<ref>{{cite news|url=http://www.independent.co.uk/money/spend-save/bluechip-dividends-tipped-to-soar-8458512.html?origin=internalSearch |title=Blue-chip dividends tipped to soar |work=] |date=2013-01-20 |accessdate=2013-11-11}}</ref><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=2013-11-27}}</ref> | |||
| ==Regulation== | ==Regulation== | ||
| In June 2013 the ] and the ] filed lawsuits against Banc De Binary<ref name = "WSJ">{{cite web|url=http://online.wsj.com/article/SB10001424127887324798904578529241482337164.html|title = Regulators Sue Prediction Site, Allege Illegal Options|publisher = Wall Street Journal |accessdate = 11 June 2013|archiveurl=http://www.webcitation.org/6L9hopyb5|archivedate=2013-11-15}}</ref> as part of an increased effort to regulate prediction-based trading following a lawsuit with ].<ref name="one"/> The SEC said that Banc De Binary stated in 2012 that half of its 250,000 investors were based in the US. However, the ] is the only such service authorized by the US government to operate in the country.<ref name = "WSJ"/><ref>{{cite news|newspaper=Financial Times|date=June 7, 2013|title=US launches civil action against Banc de Binary|first1=Gregory|last1=Meyer|first2=Arash|last2=Massoudi |url=http://www.ft.com/intl/cms/s/0/f507568e-ced9-11e2-8e16-00144feab7de.html?siteedition=intl#axzz33htcsGvs|quote=In a warning, the agencies added that only one binary options exchange had been granted exchange status in the US, Chicago-based North American Derivatives Exchange.}}</ref> Banc de Binary states that it has stopped offering its services to US residents.<ref>https://bancdebinary.com/</ref> | |||
| On 7 January 2013, Banc De Binary was licensed as an investment firm by the Cyprus Securities and Exchange Commission (CySEC).<ref name="CYSEC">{{cite web|url=http://www.cysec.gov.cy/licence_members_1_en.aspx |title=Cyprus Securities and Exchange Commission |publisher=Cysec.gov.cy |date= |accessdate=2013-08-17}}</ref><ref name="FinMir">{{cite web |url=http://www.financialmirror.com/news-details.php?nid=29363|title=Banc De Binary is first Binary Options Broker in EU |publisher= Financial Mirror |accessdate=Aug 11, 2013}}</ref> | |||
| Investment firms regulated by CySEC must demonstrate to CySEC that their activities comply with the laws of any non-] countries where they do business.<ref>{{cite web|url=http://forexmagnates.com/get-out-cysec-bans-fx-firms-from-accepting-non-eu-clients/|title=Get Out! CySEC Bans FX Firms From Accepting Non-EU Clientswork=Forex Magnates|accessdate=2013-10-16|archiveurl=http://web.archive.org/web/20130806024248/http://forexmagnates.com/get-out-cysec-bans-fx-firms-from-accepting-non-eu-clients/|archivedate=2013-08-06|quote= brokers which operate under the CySEC license will no longer be able to solicit business outside of the European Union, unless a potential client who resides in a non-EU member state can provide written authorization from the domestic financial markets regulator in the nation which that person is resident }}</ref><ref name="cysec-circular">{{cite web | url=http://www.cysec.gov.cy/Downloads/Circulars/2013/EPEY/Circular%20CI144-2013-22%20to%20CIFs%20-%20cross%20border%20services%20to%20third%20countries.pdf | title=Freedom to provide investment and ancillary services and or perform investment activities in a third country | publisher=Cyprus Securities and Exchange Commission | work=Circular CI144-2013-22 | date=2013-07-26 | accessdate=2013-11-11|archiveurl=http://web.archive.org/web/20130814201432/http://www.cysec.gov.cy/Downloads/Circulars/2013/EPEY/Circular%20CI144-2013-22%20to%20CIFs%20-%20cross%20border%20services%20to%20third%20countries.pdf|archivedate=2013-08-14|quote= The Commission allows, pursuant to section 79(4) of the Law, the provision of investment and ancillary services and/or the performance of investment services within the territory of a third country provided that CIFs, before commencing any activity, will take all necessary measures to ensure that they will comply with the relevant legal provisions of the third country.}}</ref> According to the company, its operations "outside of the European Union" are conducted by BDB Services Limited (formerly known as BO Systems Limited), which is incorporated in the ].<ref name=tou>{{cite web | |||
| |url=https://bancdebinary.com/terms-of-use/ | |||
| |title=Terms of Use | |||
| |quote=BO Systems Limited (Effective from January 7, 2013 until March 5, 2013) and/or BDB Services Limited (Effective from March 5, 2013) (hereafter the Company) | |||
| The trading address of BDB Services Limited is situated at Suite 106, Premier Building, Victoria, Mahe, Seychelles. | |||
| Outside of the European Union, this website is operated by BDB Services Limited (Incorporated in Seychelles) | |||
| }}</ref> | |||
| The Financial Services Register maintained by the UK's ] states that from 25 February 2013 the company "is authorised or registered by ... ... and may be subject to limited regulation by the Financial Conduct Authority".<ref name="BancDeBinaryFSA">{{cite web| title=Financial Services Register 2013 | publisher = Bank of England Financial Services Register| date = Jun 2013| url =http://www.fsa.gov.uk/register/firmRegulator.do?sid=314566| accessdate =8 July 2013}}</ref> The company has similar licences in Germany,<ref>{{cite web|author=BaFin |url=https://portal.mvp.bafin.de/database/InstInfo/institutDetails.do?cmd=loadInstitutAction&institutId=131401 |title=BaFin – Unternehmensdatenbank BaFin |language={{de icon}} |publisher=Portal.mvp.bafin.de |accessdate=2013-08-17}}</ref> Italy, France,<ref>{{cite web|url=https://www.regafi.fr/spip.php?type=simple&id_secteur=1&lang=fr&denomination=banc+de+binary&page=af&id=3880 |title=Fiche agent financier – REGAFI – Registre des agents financiers |publisher=Regafi.fr |accessdate=2013-08-17}}</ref> and Spain.<ref>{{cite web|url=http://www.cnmv.es/Portal/Consultas/ESI/ESISExtranjerasLP.aspx?numero=3370&tipo=CLP |title=CNMV – Empresas de servicios de inversión extranjeras en libre prestación |publisher=Cnmv.es |date=2013-01-24 |accessdate=2013-08-17}}</ref> In accordance with the ], the company has "passported" into almost all member states of the EEA; MiFID allows companies to provide financial services primarily regulated by their home state rather than the state where the customer resides,<ref name="CySECList">{{cite web |url=http://www.cysec.gov.cy/licence_members_14_en.aspx|title=Cypriot Investment Firm offering cross-border services to Member States |publisher= CySEC |accessdate=Aug 11, 2013}}</ref> but clients based in other countries would receive nothing if the company collapsed.<ref name="thisismoney.co.uk">{{cite news|url=http://www.thisismoney.co.uk/money/investing/article-2407941/TONY-HETHERINGTON-US-watchdog-takes-bank-Banc-Binary-court--Britain-lets-in.html|author=Tony Hetherington|title=US watchdog takes 'bank' Banc de Binary to court...but Britain lets it in|work=]|accessdate=2013-10-16}}</ref> | |||
| 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"/> | |||
| ==Products and services== | |||
| The company allows people to place predictions on changes in the price of various assets by using a pricing platform provided by another Israeli company, Spotoption, and customised by Banc de Binary. Customers do not own the asset but instead predict whether its price will rise or fall.<ref>{{cite web|url=http://www.spotoption.com/binaryoptions/what-are-binary-options/ |title=What Are Binary Options? |publisher=SpotOption |accessdate=2014-05-20}}</ref> Spotoption also provide similar services for around 170 other binary options brokers.<ref>{{cite web|url=http://www.spotoption.com/brands/ |title=All Brands |publisher=SpotOption |date=2010-02-17 |accessdate=2014-05-20}}</ref> Banc de Binary's role is to create accounts for customers as a reseller of Spotoption's services. The company offers several kinds of options; customers can make predictions of the price of over 200 global assets including ], ], ], and ] using several variations of the trading platform including classic ],<ref name="INVESTO">{{cite web |url=http://www.investopedia.com/terms/b/binary-option.asp|title=Binary Option |publisher= investopedia.com |accessdate=Aug 11, 2013}}</ref> long term options, sixty seconds,<ref name="BOW">{{cite web |url=http://www.binaryoptionswire.com/60-second-binary-option-trading-strategy/|title=60 Second Binary Option Trading Strategy |publisher= Nancy Eleutheriou |accessdate=Aug 11, 2013}}</ref> one touch (boundary options),<ref name="INVESTO2">{{cite web |url=http://www.investopedia.com/terms/o/onetouchoption.asp|title=One-Touch Option |publisher= investopedia.com |accessdate=Aug 11, 2013}}</ref> and pairs trading. | |||
| == Awards == | |||
| * 2013, Best Binary Options Broker in the Middle East 2013, JFEX <ref name="JFEA">{{cite web |url=http://www.jordanforexexpo.net/Previous%20Events/8th%20Jordan%20Forex%20Expo/index.html|title=JEFX AWARD 2013 Winners |publisher= Jordan Forex Expo and Award 13 |accessdate=Aug 11, 2013}}</ref><ref name="icn">{{cite web |url=http://www.icn.com/en/pressreleases/2013/05/13/FORSEX-industry-celebrates-the-JFEX-2013-Awards-winners-/index.html|title=FOREX industry celebrates the JFEX 2013 awards winners |publisher= ICN.com |accessdate=Aug 11, 2013}}</ref> | |||
| * 2012, Best Binary Options Customer Service, ForexTraders <ref name="FXT">{{cite web |url=http://www.forextraders.com/|title=Forex Traders |publisher= ForexTraders.com |accessdate=Mar 1, 2013}}</ref> | |||
| * 2011, World Finance 100, '']'' Magazine<ref name="WF100">{{cite web |url=http://2011.worldfinance100.com/banc-de-binary/|title=Banc De Binary World Finance 100 Profile |publisher= World Finance 100 |accessdate=Aug 11, 2013}}</ref> | |||
| * 2011, Best Customer Service, FX Empire <ref name="FXE">{{cite web |url=http://www.fxempire.com/|title=FXEmpire |publisher= FXEmpire |accessdate=Jan 1, 2013}}</ref> | |||
| * 2011, Broker of the Year, Binary Options Daily <ref name="BOD">{{cite web |url=http://www.binaryoptionsdaily.com|title=Binary Options Daily |publisher= BinaryOptionsDaily.com |accessdate=Jan 1, 2013}}</ref> | |||
| * 2011, Platform of the Year, Binary Options Daily <ref name="BOD" /> | |||
| ==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, 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== | |||
| As of October 2013, the company was rated "F" by the United States' ] 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."<ref>{{cite web | |||
| |url= http://www.bbb.org/new-york-city/Business-Reviews/investment-management/banc-de-binary-in-new-york-ny-118878 | |||
| |title= BBB Business Review | |||
| |archiveurl= http://web.archive.org/web/20131017082101/http://www.bbb.org/new-york-city/Business-Reviews/investment-management/banc-de-binary-in-new-york-ny-118878 | |||
| |archivedate= 2013-10-17 | |||
| |quote= Factors that lowered the rating for Banc De Binary include: | |||
| 31 complaints filed against business | |||
| Failure to respond to 9 complaints filed against business}}</ref> | |||
| It appears on the ]'s "List of Unregistered Soliciting Entities That Have Been the Subject of Investor Complaints".<ref>{{cite web|title=Public Alert: Unregistered Soliciting Entities|url=http://www.sec.gov/investor/oiepauselist.htm|publisher=Securities and Exchange Commission|accessdate=15 October 2012|archiveurl=http://web.archive.org/web/20130223030930/http://www.sec.gov/investor/oiepauselist.htm|archivedate=2013-02-23}}</ref> | |||
| In Canada, it is listed on the ]'s ''Investors Warning List'' of "companies that appear to be engaging in activities that may pose a risk to investors".<ref>{{cite web|title=Investors Warning List|url=http://www.osc.gov.on.ca/en/Investors_warning-list_index.htm#v|publisher=Ontario Securities Commission|accessdate=13 January 2013 | |||
| |archiveurl=http://web.archive.org/web/20131017000849/http://www.osc.gov.on.ca/en/Investors_warning-list_index.htm | |||
| |archivedate=2013-10-17}}</ref> | |||
| From 25 February 2013, Banc De Binary is registered "subject to limited regulation" by the ]'s ].<ref name="three">{{cite news|title=Regulated Binary Options Brokers|date=June 11, 2013|url=http://www.binarytribune.com/Regulated+Binary+Options+Brokers|newspaper=Binary Tribune}}</ref><ref>{{cite news|date=October 30, 2013|title=Fears rise as foreign forex operators fall outside UK regulation|first=Vanessa|last=Kortekaas |url=http://www.ft.com/intl/cms/s/0/f7aa8634-40b4-11e3-8775-00144feabdc0.html#axzz340DZeX00 |newspaper=Financial Times|quote=Banc de Binary, a Cyprus-based binary options trading company that came to the UK in February ...}}</ref><ref>{{cite web|title=Financial Services Register 2013|publisher=Bank of England Financial Services Register|date=Jun 2013|url=http://www.fsa.gov.uk/register/firmRegulator.do?sid=314566|accessdate=8 July 2013}}</ref> | |||
| 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 ] (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.<ref>{{cite web|url=http://www.lautorite.qc.ca/en/press-releases-2013-autre.html_2013_caution-banc-de-binary.html |title=Binary options – AMF Cautions About Solicitations by Banc de Binary |publisher=Lautorite.qc.ca |date= |accessdate=2013-08-17}}</ref> | |||
| ==External links== | ==External links== | ||
| * | |||
| * | |||
| * | |||
| * | |||
| * | |||
| ==References== | ==References== | ||
Revision as of 20:09, 8 June 2014
 | |
| Company type | Private |
|---|---|
| Industry | binary options |
| Founded | 2009 |
| Key people | Oren Shabat Laurent |
| Website | www.bancdebinary.com/ |
Banc De Binary is a binary options trading company headquartered in Cyprus and Israel which was enjoined by a U.S. Federal Court in 2013 from offering securities for sale or acting as a broker-dealer in the US. Investors using its service bet on future prices of gold, oil, stocks or market indexes and are paid a return if their predictions come true within a set amount of time. The company was founded on January 15, 2009.
Regulation
In June 2013 the Securities Exchange Commission and the Commodity Futures Trading Commission filed lawsuits against Banc De Binary as part of an increased effort to regulate prediction-based trading following a lawsuit with Intrade. The SEC said that Banc De Binary stated in 2012 that half of its 250,000 investors were based in the US. However, the North American Derivatives Exchange is the only such service authorized by the US government to operate in the country. Banc de Binary states that it has stopped offering its services to US residents.
From 25 February 2013, Banc De Binary is registered "subject to limited regulation" by the U.K.'s Financial Conduct Authority.
External links
References
- "CFTC Amends Complaint against Banc de Binary, Ltd. to Charge Three Affiliated Corporate Entities with Violating the CFTC's Ban on Trading Options Contracts Off-Exchange". www.cftc.gov. U.S. government. Retrieved 8 June 2014.
- "Securities and Exchange Commission v. Banc de Binary Ltd., Civil Action No. 2:13-CV-00993-RCJ-VCF
SEC Obtains Preliminary Injunction in Binary Options Case". U.S. Securities and Exchange Commision. 1 August, 2013. Retrieved 8 June 2014.{{cite web}}: Check date values in:|date=(help) - ^ Meyer, Gregory; Massoudi, Arash (June 7, 2013). "US launches civil action against Banc de Binary". Financial Times.
- "Regulators Sue Prediction Site, Allege Illegal Options". Wall Street Journal. Archived from the original on 2013-11-15. Retrieved 11 June 2013.
Banc de Binary offered U.S. customers options contracts on wheat, gold, currencies and stock indexes through its website, according to the CFTC complaint. The site essentially allows investors to gamble on the future price of something at a point in time.
- Wright, Susan. "Banc De Binary CEO Oren Laurent Opens Up on Binary Options - with Banc De Binary". Investing.com. Retrieved 2013-11-11.
- ^ "Regulators Sue Prediction Site, Allege Illegal Options". Wall Street Journal. Archived from the original on 2013-11-15. Retrieved 11 June 2013.
- Meyer, Gregory; Massoudi, Arash (June 7, 2013). "US launches civil action against Banc de Binary". Financial Times.
In a warning, the agencies added that only one binary options exchange had been granted exchange status in the US, Chicago-based North American Derivatives Exchange.
- https://bancdebinary.com/
- "Regulated Binary Options Brokers". Binary Tribune. June 11, 2013.
- Kortekaas, Vanessa (October 30, 2013). "Fears rise as foreign forex operators fall outside UK regulation". Financial Times.
Banc de Binary, a Cyprus-based binary options trading company that came to the UK in February ...
- "Financial Services Register 2013". Bank of England Financial Services Register. Jun 2013. Retrieved 8 July 2013.