Tradologic’s option types are fully compliant with the new binary options regulations in Japan.
Binary options platform provider Tradologic has announced that they have been hired to upgrade the binary solution of mid-size Japan FX broker FXTrade.
FXTRade began life as an IB of GFT and later became a white label of Saxo Bank, before growing into a full fledged independent forex and binary broker. FXTrade did revenues of ¥2.1 billion (about $21 million) and net income of ¥369 million ($3.7 million) in its most recent fiscal year ended March 31, 2013.
It has been a long way for binary options providers in Japan, as they have been having a tumultuous year since last November. Back then Japan’s financial regulator FFAJ announced that they were imposing a ban on binary options trading in Japan, until new regulations licensing the activity are put in place. By this summer they had come out with a set of rules that aim to solidify binary options trading framework in Japan. One of the main regulations is that strikes cannot be shorter than one hour, limiting the gambling-like activity of short dated binary options.
The FFAJ has also urged binary options companies to refrain from providing bonuses on account opening or deposits because that can influence investors’ judgments. It is apparent for Japanese regulators that the solicitation of customers has to happen in an ordinary way with the customer being fully informed that participation in trading binary options involves substantial risks and the broker has to make sure that the client understands these risks.
Tradologic and other leading binary platform providers have been preparing actively for the new regulations and will be ready to launch the new platform for their Japanese partners by the end of the year. We earlier reported that Tradologic rival SpotOption opened a Tokyo office in advance of the Japan binary options market reopening.
Before the November ban binary trading was a very popular activity among Japanese traders, and things seem to be headed that way again.
To see the Tradologic press release click here.