Banc de Binary
| Private | |
| Industry | Binary options |
| Founded | 2009 |
|
Key people
|
Oren Shabat Laurent (CEO) Abraham 'Abe' Cofnas, Head Analyst |
Banc De Binary was a Cypriot and Israeli financial firm with a history of regulatory issues on three continents. On January 9, 2017 the company announced that it would be closing because of negative press coverage and its tarnished reputation. The firm also surrendered its brokerage license with the Cyprus Securities and Exchange Commission (CySEC) removing its ability to legally trade in the European Union. The firm's 2014 revenues were reported as $100 million
It sold binary options on assets including foreign exchange. It was barred from accepting U.S. customers in August 2013 after being charged with several offenses by the CFTC and SEC in a civil lawsuit. The company agreed to paid $11 million in restitution and fines to settle the suit. It is also banned from accepting customers in Canada, Australia, New Zealand, and Israel.
In countries where it has not been banned, the company operated an online trading website through which customers could 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, as short as 60 seconds. Banc De Binary is an associate of SpotOption Exchange which sets the price of the option. The price of the option is not a market price, but is set by SpotOption Exchange itself.
The Wall Street Journal described it as "a website that allows people to bet on the price of gold, oil or stocks".
The company allowed people to wager on changes in the price of various assets by using a pricing platform provided by an Israeli company, SpotOption, and customised by Banc De Binary. Customers did not own the asset but instead predicted whether its price would rise or fall. Banc De Binary's role was to create accounts for customers as a reseller of SpotOption's services. The company offered several kinds of options; customers could make predictions of the price of over 200 global assets including commodities, , , and currencies using several variations of the trading platform including classic binary options, long term options, and sixty second options, and pairs trading. According to an advertisement for Banc De Binary, its CEO Oren Shabat Laurent was a founder of SpotOption, the firm that set the option prices.
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Wikipedia