Misplaced Pages

Banc De Binary

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.

This is an old revision of this page, as edited by Rybec (talk | contribs) at 03:13, 17 October 2013 (spelling). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Revision as of 03:13, 17 October 2013 by Rybec (talk | contribs) (spelling)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff)
Banc De Binary
Company typePrivate
IndustryFinancial Services
Founded2009
HeadquartersLimassol, Cyprus
Key peopleOren Shabat Cohen (also known as Oren Laurent), CEO and Sarah Fenwick, Head of Communications
ProductsBinary Option Trading
Number of employees4 - 10 (but claimed it was 250)
Websitewww.bancdebinary.com/

Banc De Binary, also known as ET Binary Options Ltd., is a Cyprus-based private option broker specializing in the trade of binary options (also known as fixed return options) on assets including commodities, stocks, indices, and foreign exchange. The company serves retail and institutional customers worldwide, where not prohibited by local regulation, which following a recent ruling by CySEC is only inside the EU. It is regulated by the Cyprus Securities Exchange Commission In June 2013 it was exposed as a boiler room scam, where clients believed they were legally trading assets. In fact the company would produce and manipulate software to ensure clients lost their trades, and then steal money from their account afterwards. An investigation by the British Daily Mail newspaper journalist Tony Hetherington revealed how one client alone had $25,000 stolen from his bank account after signing up with them. The CFTC and the SEC have frozen all US accounts until further notice.

According to the CFTC, which with the SEC in June 2013 charged the company with violations of US financial services regulations, Banc de Binary 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 increase or decrease in a given time period.

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

History

Oren Shabat Cohen claimed on his personal site to have graduated from NYU with a degree in economics, and then that he spent years working at NAF Hedge Funds and Infinity Private Investment Funds, but neither exist. Oren Shabat Cohen founded Banc De Binary on January 15, 2009 following the SEC’s decision to approve the listing of binary options; if he had been a real NY trader as stated, he would have known that Banc de Binary could not lawfully operate in the US without obtaining a license from CFTC and the SEC first. In 2011 as part of the alleged fraud, the company claimed to be nominated and accepted into the World Finance 100, they then released a widely seen video on Youtube of themselves receiving the fake prize in front of a fake set of the London Stock Exchange. In an interview, Oren Shabat Cohen stated that by June 2011 the company had around 20,000 client accounts, and in an open letter published by August 2012, he stated that number was then 200,000.

In January 2013, the company became the first regulated binary options broker, accepting European Union regulation offered by CySEC, and at the same time it stopped accepting new client accounts from the United States to begin negotiations with the CFTC for binary options regulation in the United States. Banc de Binary claimed to have an office in NY at Trump Towers, but this in fact a virtual office space, as the building sells them to anyone wanting a NY address only. 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.

Banc De Binary's new home page.
Banc De Binary's new home page.

On June 6, 2013, Banc De Binary was charged by both the CTFC and SEC for alleged violations of US Financial Regulation. Both the CTFC and SEC working in conjunction with one another filed civil suits against the company, seeking disgorgement, plus financial penalties as well other preliminary and permanent injunctions against the company. According to US regulators, Banc de Binary had contacted clients in the US via Skype and other means and signed them up to trade, despite knowing they had no license to trade and the client unable to afford it. Clients believed they were trading, when in fact Banc de Binary had rigged the software behind the trading platform to ensure they lost.

Regulation

Banc De Binary was licensed as an investment firm by the Cyprus Securities and Exchange Commission (CySEC) on 7 January 2013. The Financial Services Register maintained by the UK's Financial Conduct Authority 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". The company has similar licences in Germany, Italy, France, and Spain. In accordance with the European Markets in Financial Instruments Directive (MiFID), 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. Due to a legal loophole Banc de Binary can passport themselves into other EU countries, but clients based there would receive nothing if the company collapsed. In the US, binary trading is legal, but only with registered organizations such as NADEX, who follow strict rules on transparency and client capital.

Products and services

Banc De Binary's One Touch trading Platform.
Banc De Binary's One Touch trading Platform.

The company offers several products and services. Traders can trade on over 200 global assets including commodities, stocks, indices, and FOREX using several variations of the trading platform including classic binary options, long term options, sixty seconds, one touch (boundary options), and pairs trading.

In addition to 24/7 customer service, Banc De Binary offers Daily Market Reviews, access to analytical market research, and trade signals. It also provides tutorials on trading binary options, as well as other educational tools. In order to seem genuine, the company set up a fake London Stock Exchange set and awarded themselves several imaginary prizes, some of which can be seen below. The websites that awarded the prizes were also faked, some even named with an evident sense of humor; for example Moat and Bailey awarded Banc de Binary with the award for being the most secure binary broker, which was ironic considering that identity theft was one of the aims of the company.

Awards

  • 2013, Best Binary Options Broker in the Middle East 2013, JFEX
  • 2013, Corporate Governance Award, World Finance Magazine
  • 2012, Best Binary Options Customer Service, ForexTraders
  • 2012, Best Binary Options Platform in North America, World Finance Magazine
  • 2012, Best Binary Options Platform in Asia, World Finance Magazine
  • 2012, Most Secure Binary Broker, Moat & Bailey
  • 2011, World Finance 100, World Finance Magazine
  • 2011, Best Customer Service, Forex News Now
  • 2011, Best Customer Service, FX Empire
  • 2011, Broker of the Year, Binary Options Daily
  • 2011, Platform of the Year, Binary Options Daily

US regulatory issues

On 6 June 2013, Banc De Binary was charged by both the CTFC and SEC for alleged violations of US financial regulations. 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. 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. In response to the US charges the company put out a misleading and ambiguous 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:

In a message posted on its Web site, the company stated that

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

Banc De Binary has a file with the United States' Better Business Bureau that was opened in 2010. It is no longer accredited, because "The BBB reports that Banc De Binary has informed them that they no longer operate any offices in the United States." Previously, it had been rated "F" due to the amount of time it had been in operation and for failing to respond to 5 of 11 customer complaints.

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 was unable to recover his investment", the Autorité des marchés financiers (AMF) warned investors about the company, saying

The AMF cautions Québec investors about fraudulent schemes involving binary options and their trading platforms. The consequences of these schemes can include blocked access to accounts, refusal to refund investments, identity theft and the manipulation of software to generate losing trades.

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 and does not specifically target investors in Québec.

External links

References

  1. ^ "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" (PDF). Banc de Binary's chief executive officer, Oren Shabat Cohen (a/k/a Oren Laurent), resides in Israel and is the registrant for the website www.bbinary.com.
  2. BANCDEBINARY.COM whois record, retrieved 2013-10-15. "Registrant Name: Oren Shabat Cohen"
  3. Banc de Binary(bbinary.com) Issue - Page 2. Forexpeacearmy.com. Retrieved on 2013-10-16.
  4. Get Out! CySEC Bans FX Firms From Accepting Non-EU Clients. Forex Magnates. Retrieved on 2013-10-16.
  5. ^ "Regulated Investment Firms – CySEC". CySEC. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  6. ^ "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". Retrieved 2013-10-16. The CFTC today also announced the issuance of a joint CFTC and SEC Consumer Alert on fraudulent schemes involving binary options and their trading platforms. The Alert warns customers that the perpetrators of these schemes allegedly refuse to credit customer accounts, deny fund reimbursement, commit identity theft, and manipulate software to generate losing trades.
  7. Banc De Binary Reviews. Scambook. Retrieved on 2013-10-16.
  8. ^ TONY HETHERINGTON: US watchdog takes 'bank' Banc de Binary to court...but Britain lets it in. This is Money. Retrieved on 2013-10-16.
  9. "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". CFTC. Retrieved 11 June 2013.
  10. "Regulators Sue Prediction Site, Allege Illegal Options". Wall Street Journal. Retrieved 11 June 2013.
  11. ^ Wright, Susan (27 May 2013). "Banc De Binary CEO Oren Laurent Opens Up on Binary Options". Investment Underground. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  12. ^ Banc de Binary(bbinary.com) Issue. Forexpeacearmy.com. Retrieved on 2013-10-16.
  13. ^ "Banc De Binary World Finance 100 Profile". World Finance 100. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  14. "Banc De Binary's CEO Oren Laurent Expresses Sincere Thanks". BinaryOptionsDaily.com. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  15. "Banc De Binary is first Binary Options Broker in EU". Financial Mirror. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  16. "Banc De Binary Quits US (For Now)". BinaryOptions.net. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  17. "SECURITIES AND EXCHANGE COMMISSION vs. BANC DE BINARY LTD, complaint" (PDF). Banc de Binary maintained a virtual office on Wall Street
  18. Virtual Office Address at 40 Wall St., New York City, New York 10005 | Davinci Virtual Office Space & Solutions. Davincivirtual.com. Retrieved on 2013-10-16.
  19. "SEC Warns Investors About Binary Options and Charges Cyprus-Based Company with Selling Them Illegally in U.S." SEC. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  20. "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". CFTC. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  21. "Cyprus Securities and Exchange Commission". Cysec.gov.cy. Retrieved 2013-08-17.
  22. "Financial Services Register 2013". Bank of England Financial Services Register. Jun 2013. Retrieved 8 July 2013.
  23. BaFin. "BaFin – Unternehmensdatenbank BaFin" (in Template:De icon). Portal.mvp.bafin.de. Retrieved 2013-08-17.{{cite web}}: CS1 maint: unrecognized language (link)
  24. "Consob". Consob.it. Retrieved 2013-08-17.
  25. "Fiche agent financier – REGAFI – Registre des agents financiers". Regafi.fr. Retrieved 2013-08-17.
  26. "CNMV – Empresas de servicios de inversión extranjeras en libre prestación". Cnmv.es. 2013-01-24. Retrieved 2013-08-17.
  27. "Cypriot Investment Firm offering cross-border services to Member States". CySEC. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  28. "Binary Option". investopedia.com. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  29. "60 Second Binary Option Trading Strategy". Nancy Eleutheriou. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  30. "One-Touch Option". investopedia.com. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  31. "Account Types – Banc De Binary". Banc De Binary. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  32. "Education Centre". Banc De Binary. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  33. Banc De Binary Receives World Finance 100 Award. YouTube (2012-02-09). Retrieved on 2013-10-16.
  34. http://forexnewsnow.com/
  35. "JEFX AWARD 2013 Winners". Jordan Forex Expo and Award 13. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  36. "FOREX industry celebrates the JFEX 2013 awards winners". ICN.com. Retrieved Aug 11 2013. {{cite web}}: Check date values in: |accessdate= (help)
  37. ^ "World Finance". World Finance Magazine. Retrieved Mar 1 2013. {{cite web}}: Check date values in: |accessdate= (help)
  38. "Forex Traders". ForexTraders.com. Retrieved Mar 1 2013. {{cite web}}: Check date values in: |accessdate= (help)
  39. "MOAT & BAILEY". MOAT & BAILY. Retrieved Jan 1 2013. {{cite web}}: Check date values in: |accessdate= (help)
  40. "Forex News Now". ForexNewsNow.com. Retrieved Jan 1 2013. {{cite web}}: Check date values in: |accessdate= (help)
  41. "FXEmpire". FXEmpire. Retrieved Jan 1 2013. {{cite web}}: Check date values in: |accessdate= (help)
  42. ^ "Binary Options Daily". BinaryOptionsDaily.com. Retrieved Jan 1 2013. {{cite web}}: Check date values in: |accessdate= (help)
  43. "Banc De Binary: Gets Charged by the CTFC". ForexMagnates. Retrieved 19 June 2013.
  44. "CTFC files civil suit against Banc De Binary". The Fx View. Retrieved 19 June 2013.
  45. ^ "SEC Warns Investors About Binary Options and Charges Cyprus-Based Company with Selling Them Illegally in U.S." Securities Exchange Comission. Retrieved 19 June 2013. Cite error: The named reference "SEC" was defined multiple times with different content (see the help page).
  46. "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". Retrieved 19 June 2013.
  47. "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". Retrieved 19 June 2013.
  48. Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013). Sec.gov. Retrieved on 2013-10-16.
  49. "Binary Options Trading Online with Banc De Binary". L.bbinary.com. Retrieved 2013-08-17.
  50. "Banc De Binary review". Better Business Bureau. Retrieved 2013-08-17.
  51. "Banc De Binary Review – INVESTMENT MANAGEMENT in New York, NY – BBB Business Review – BBB serving Metropolitan New York, Long Island, and the Mid-Hudson Region". Web.archive.org. Archived from the original on 2012-10-08. Retrieved 2013-08-17.
  52. "Public Alert: Unregistered Soliciting Entities". Securities and Exchange Commission. Retrieved 15 October 2012.
  53. "Investors Warning List". Ontario Securities Commission. Retrieved 13 January 2013.
  54. "Binary options – AMF Cautions About Solicitations by Banc de Binary". Lautorite.qc.ca. Retrieved 2013-08-17.
Categories: