Smoke, mirrors and paraffin: As binary options becomes a massive taboo globally, attempts are being made to generate a different sort of interest. The banality continues…..
Many a bizarre turn of fate has occurred within the dubious and widely fraudulent binary options business over the past two years.
Whilst it may well be in its twilight period, many of the perpetrators of marketing-over-substance corporate antics have begun to switch their focus toward other equally high profile and strange activities.
Last week, BDSWISS, which is neither a bank, nor is it Swiss, made a commercial announcement that it is extending its license into portfolio management, under which the company claims that it is in the process of bundling a growing range of international high network individuals with big appetite to invest in Europe especially in Germany.
In its capacity as asset manager BDSwiss will take the lead of structuring a competitive offer to take over the second largest German airline Airberlin which lost support from their existing shareholders recently.
Making an extremely tenuous link between a bankrupt airline and FX trading, BDSWISS maintains that due to the assumption that FX traders travel regularly, the idea was raised from clients to the management of BDSwiss who turned this into a striving business opportunity.
It would be of great interest to understand which clients exactly. Perhaps clients that are under the impression that BDSWISS is actually Swiss, a very excusable conclusion to draw considering the company’s flagrant misuse of the Swiss name and flag, something that is a felony according to Swiss law.
Perhaps it could have been the clients that have made massive losses, largely due to their misconception that binary options is actually a real financial product rather than a weighted gaming platform with absolutely no connectivity whatsoever to live markets and no similarity to the genuine electronic trading sector. This would perhaps explain the rationale behind purchasing a bankrupt airline from its receivers.
Just two days ago, Brigitte Zypries, Germany’s Economy Minster said “Airberlin needs a swift deal with carriers interested in buying all or part of the insolvent German airline because its prospects look bad.”
Ms Zypries said she was surprised by criticism of the German government’s €150 million (Dh657m) bridging loan to keep airberlin flying, saying she expects the money to be repaid. The liability of this is even graver as Etihad withdrew its support on August 15, leaving an imminent fire sale ahead.
This is a clear indication that the airline was unable to survive even after a vast government bridging loan, and with Germany’s economic situation creaking, demonstrated by its refusal to extend bailouts to its largest financial institutions, allowing them to fall on their swords should they be rash enough to do so, therefore desperation for a new purchaser is likely to take the foreground.
It is entirely possible, therefore, that BDSWISS would be able to buy the Airberlin brand for a very low price, and then tout to its ‘portfolio management’ customers that it owns a German airline, thus adding to its marketing orientated image. The real question is, who is the market maker behind the ‘portfolio management’ platform, where is it hosted and operated from, and how much similarity does it bear to its Cyprus based binary options origins?
FinanceFeeds discussed the illegality of misrepresenting a company as a Swiss entity recently with a compliance officer in Switzerland, who explained that this is a transgression and that Switzerland’s government officials reserve every right to have such companies closed down.
In January this year, BDSWISS entered into a 150,000 Euro settlement with CySec, the regulator subsequently making the non-specific statement that the firm had been brought about as a result of the firm having not complied with the rulings relating to fair, clear and non-misleading marketing communications.
FinanceFeeds asked CySec to explain exactly what these transgressions consisted of, and in what specific areas BDSWISS issued misleading marketing communications, however no reply was proffered, despite their having proactively contacted FinanceFeeds to explain that there had been a fine issued for that particular reason.
We must at this point state explicitly and unambiguously that the statements made in this article are hypothetical and not substantiated by facts directly provided to us by BDSWISS, but instead on our own observations.
This is irony in action, because BDSWISS may well have had to write a check for 150,000 Euros to settle an arbitrary matter relating to some of their perhaps less than carefully considered marketing techniques, but the company has been allowed to register itself, and gain a license, and promote its services to a global audience whilst calling itself BDSWISS and using the Swiss flag (a brand in itself) as a company motif.
First of all, Banc de Swiss is a vague attempt to appear Swiss, and an even more vague attempt at the use (or misuse) of the French language. BDSWISS is neither Swiss, nor is its moniker correct in French.
Nouveau-riche garishness is often the mark of a company whose veneer is thicker than its substance, hence by attempting to circumvent the binary options bans that are currently occurring, and move away from what has now become a very public elephant in the room, and moving toward operating a similar system, from Cyprus, not Zurich, the smoke and mirrors are likely to continue to be in active use.
The full documentary on use of Swiss brands and the legalities that surround them can be viewed in this video.