Exclusive: SpotOption pulls out of the US market, cancels its agreement with Cantor Exchange
Prominent binary options platform provider SpotOption was the very first technology company and market maker to enter the US binary options market last year by partnering with Cantor Exchange and engineering its platform to be able to provide exchange-traded binary options in accordance with US law. In the United States, the provision of over-the-counter (OTC) […]
Prominent binary options platform provider SpotOption was the very first technology company and market maker to enter the US binary options market last year by partnering with Cantor Exchange and engineering its platform to be able to provide exchange-traded binary options in accordance with US law.
In the United States, the provision of over-the-counter (OTC) binary options is prohibited, and therefore all industry participants in that sector must provide retail binary options via an exchange.
There are two dedicated binary options exchanges in the United States, both based in Chicago, among the electronic trading venues which dominate globally, those being Cantor Exchange and NADEX (North American Derivatives Exchange).
This week, FinanceFeeds can exclusively announce that SpotOption has terminated its agreement with Cantor Exchange, and is pulling out of the US market, despite being a pioneer.
In a letter dated March 1, 2016 to Cantor Exchange, which FinanceFeeds has obtained, SpotOption stated the following:
RE: Termination of the Vendor Connectivity Agreement
I regret to inform you that on February 25, 2016 SpotOption has provided notice of termination of the Vendor Connectivity agreement with The Cantor Exchange. SpotOption will continue to provide services up till the termination date of the 25th of August. Following this date SpotOption will cease providing Vendor Software and all other related services.
SpotOption sees great potential for the trading of Binary Options in the U.S. However due to certain circumstances beyond our control we have decided to cease our involvement in this project at this time.
Today, FinanceFeeds CEO Andrew Saks-McLeod spoke to Rich Jaycobs, President of Cantor Futures Exchange, who explained:
“SpotOption is an independent software vendor and in indeed true to this form in the respect that the company is completely free to come and go. In terms of functionality, SpotOption, as with all market makers on the exchange, can choose to connect to an specific app according to specific buisness requirements. We would be pleased to have SpotOption remain connected as long as the company wishes and sometime between now and August I’d like to have a converation with the firm about that.”
SpotOption were contacted by FinanceFeeds with regard to this matter but did not offer comment.
Cantor Exchange has pioneered the exchange-traded binary options sector, and its principle is very worthy indeed in the respect that it puts market makers and traders on the same level, therefore negating any conflict of interest. The company is a subsidy of one of Chicago and New York’s vast institutional establishments and has a great deal of experience in the institutional electronic trading sector in North America.
Photographs at Cantor Exchange, 499 Park Avenue, New York and in downtown Manhattan, New York. Copyright FinanceFeeds