French football clubs rush to terminate binary options partnerships

Maria Nikolova

Under Article 77 of the Sapin II law, football teams have until the end of June this year to terminate all sponsorships and partnerships with companies offering trading with high-risk financial instruments.

The number of French football clubs putting an end to their partnerships with trading firms offering high-risk financial products is rapidly growing. This, of course, has to do with the “Sapin II” law, which has dramatically affected the status of the online trading sector in France.

Looking at the text of the law itself, we see that it prohibits all forms of sponsorship and partnership that results in the advertising, be it direct or indirect, of high-risk financial products. That is how sports teams got touched by the ban, as the recent influx of sponsorship deals with binary option firms and FX brokers had to cease.

The law provides some more time to end such partnerships – this has to be done not later than June 30, 2017. However, French football clubs are not ready to wait for the deadline and are in a hurry to terminate the deals. A report by Challenges.fr estimates that five of France’s Premiere League football clubs have terminated their partnership deals with online trading companies before the end of 2016. The list includes names like PSG, Olympique lyonnais and OGC Nice.

Looking at the three FCs mentioned above, we have to note the following: the three of them had partnership deals with binary options brokers – OptionWeb, 24option.com, and InteractiveOption.com, respectively. At the time of signing the deals, all three binary options providers labeled themselves as leaders in their segment. In addition to that, when the deals were sealed, these firms were not sanctioned (or blacklisted) by the French financial markets’ regulator AMF.

These facts should be sufficient to justify the actions of the FCs back in time, when the partnerships were formed.

None of the football clubs was eager to admit (at least, not to Challenges.fr) that they terminated the deals because of the law. All of them, however, have confirmed that they were aware of the new rules envisaged.

The trend of FCs dropping partnerships with binary options brands is apparent outside of France too. An example is Southampton FC, which in September put an end to its sponsorship agreement with Banc de Binary, following a successful FinanceFeeds lobbying campaign. Yesterday, January 11, 2017, the Cyprus Securities and Exchange Commission (CySEC) announced the renouncement of the Cyprus Investment Firm (CIF) license of Banc de Binary.

Read this next

Digital Assets

Paxos opens R&D center in Israel to focus on transaction signing and crypto custody security

“Paxos is looking to expand its team in Israel in 2023 and beyond, giving engineers the opportunity to work on cutting-edge financial products and shape the future of the global economy.”

Executive Moves

Stash appoints Liza Landsman as CEO to further grow investing app

Stash is an investing and banking app with over 2 million active subscribers. Its subscription plans start at just $3 a month, and offer a range of products including investing, banking, education, and advice.

Institutional FX

Invast Global ramps up its offering with 10 soft commodity CFDs

Sydney-based prime-of-prime provider Invast Global has expanded its offering with the addition of ten soft commodity CFDs, which increases their index and commodity CFD offering to 35 instruments.

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

Executive Moves

Financial Commission Adds Sam Low to Dispute Resolution Committee

The Financial Commission (FinaCom PLC), a dispute resolution service that caters to the financial services industry, has appointed Sam Low as the newest member of its Dispute Resolution Committee (DRC).

Digital Assets, Uncategorized

De-facto owner of Bithumb exchange arrested in South Korea

South Korean prosecutors have arrested Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb, on charges of embezzlement and stock manipulation.

Retail FX

Interactive Brokers volumes snap three-month losing streak

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose in January, an indication that investor confidence in the financial markets is rebounding after having been fairly mixed over the past few months.

Digital Assets

VVF invests $5 million in Everscale, a potential Layer 2 solution for Venom blockchain

“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop. In particular, we are talking about the Venom blockchain project and its ecosystem, which is planned to be launched soon and for which Everscale is a potential Layer 2 solution.”

<