CFTC goes after Banc de Binary


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Banc de Binary, one of a handful of CySEC-regulated binary options brokers, has been charged with taking US clients.

LeapRate Exclusive…. Assuming the charges stick, it will be interesting to see if the EU regulators involved — Cyprus’ CySEC and the UK’s FCA — cooperate with the CFTC in the US, and enforce whatever penalties are assessed by US authorities….

The CFTC has filed a civil complaint in Nevada court charging Banc de Binary that it:

  1. held itself out as being headquartered on Wall Street — it is based in Cyprus, and is regulated by CySEC, although on its website it lists its European Headquarters as 1 King Street in London
  2. offered binary option trading to U.S. customers, and
  3. accepted and executed orders from U.S. customers.

All three above are major no-nos as far as the CFTC goes and therefore the CFTC also charged Banc de Binary with operating as an unregistered Futures Commission Merchant (FCM).

Banc de Binary is one only two binary options brokers to have received CySEC licensing. We earlier reported that CySEC created a special requirement for binary options brokers to register and be licensed, after several years of such brokers operating ‘under the radar’.

The CFTC specified that from May 2011 through March 2013, Banc de Binary allowed U.S. customers to trade options products (i.e. binary options) prohibited by the CFTC’s ban on off-exchange options trading. The complaint alleges that Banc de Binary did not limit its options offerings to ‘eligible contract participants’, allowing U.S. customers to trade without requiring any information about their trading history or net worth.

The CFTC is seeking civil monetary penalties, an injunction preventing Banc de Binary from engaging in certain commodity options activity with U.S. customers, and other remedial ancillary relief, including restitution, disgorgement, and rescission — likely meaning it wants a large fine assessed against Banc de Binary, as well as the return of any profits made from U.S. customers.

The CFTC acknowledged that European regulators — specifically the UK’s newly named FCA, and Cyprus’ CySEC — assisted in the investigation.

For the complete CFTC press release click here.

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  • rick

    I lost 5000 euros to this firm as they locked me into a bonus terms ,the FSA were unable to help me, as the BDB were out of jurisdiction
    They pretended to be head quatered in New York, however it was always obvious that they were boiler type firm
    All the staff are sleezy con men who entice you to take a bonus, promise excellent personal service, and also recommend call or put positions on your real money account.

    And moneybookers, shame on you, you were easily able to rectify and return my funds, but you did not help .
    and as i made large sized trades, they inreased the spread, i also suffered constant platform manipulation as they deleiberately caused the web based platform to fail through the day , especially during high market activity.

    This firm needs to be buried into the stench where it belongs , and i hope the fine is massive

    WELL DONE CFTC

  • Umeh Henry

    I want to alert all those prospective customers of banc de binary that they are scam
    I wired money to them and I am not satisfied with the conditions that were hidden from when I was to wire the money only to come to discover it late and they insist they are not going to refund me my money they did not ask to be verified before receiving the money and now must verify before wiring back my money!

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CFTC goes after Banc de Binary

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