Corporate cloning – the malpractice of misusing brands, logos and contact details of authorized companies by unauthorized businesses, is gathering pace. The British Columbia Securities Commission (BCSC) has just published a warning against Nadex Pro Signals, a company falsely claiming to be associated with North American Derivatives Exchange, Inc. (Nadex).
Nadex Pro Signals operates via www.nadexprosignals.weebly.com. The entity purports to be based in Nevada and to offer services in binary options trading through the North American Derivatives Exchange.
The BCSC says that Nadex Pro Signals is not registered to trade in, or advise on, securities or exchange contracts in British Columbia. The regulator urges BC residents to exercise caution when dealing with such firms.
Nadex Pro Signals is abusing the name of a regulated US company, without having any legitimate connection to it.
The original North American Derivatives Exchange, Inc. (Nadex), part of IG Group Holdings plc (LON:IGG), is based in Chicago, USA. It operates via www.nadex.com and is amid the handful of exchanges licensed by the Commodity Futures Trading Commission (CFTC) to provide binary options trading services in the United States.
In the US, binary options trading is allowed only on certain exchanges, whereas OTC trading with these instruments is illegal. In Canada, binary options trading is allowed OTC, but providers have to obtain the necessary licenses from regulators of the provinces in which they want to develop their business.
To view the warning by the British Columbia watchdog regarding the Nadex clone, click here.