IG Group to continue offering binary options to current clients
The Sprints product generates around £15 million of annualised revenue, IG specifies in today’s report.
Yesterday, FinanceFeeds reported about IG Group Holdings plc (LON:IGG) addressing its affiliates, informing them of its decision to no longer promote binary/digital 100 products via its affiliates, except in the US and Japan.
Today, the online trading company clarified its position concerning its binary options offering. In a financial results filing with the London Stock Exchange, IG’s Chief Executive Peter Hetherington confirms that the company had taken the decision to no longer offer the Sprints binary product to new clients globally.
However, the detailed explanation that follows clarifies that whereas the Sprints will not be available to new clients, they will still be available to current clients.
“However, IG recognises the fact that this is a limited risk product and is popular with current clients so will continue to make it available to them on the platform. The Sprints product generates around £15 million of annualised revenue.”
The official stance of the company concerning new regulations remains unchanged. IG notes that as it “continues to shift its strategic balance towards sophisticated trading and investing, Sprints no longer fits with the future direction of the business.”
Of course, IG is in no way similar to the binary fraudsters that have ruined the reputation of binary options trading, as IG is a genuine electronic trading firm whereas the binary name has been hijacked by gaming fraudsters.
In today’s report, IG notes that in Europe, the regulatory situation is in a period of transition on the approach to the implementation of MiFID II in January 2018. It stresses the importance of the new rules introduced by Belgium FSMA with regards to CFDs, as well as Germany’s Bafin plans to introduce stricter regulations for the sector. The measures for curtailing poor behaviours and improving consumer outcomes, announced by CySEC at the end of November last year, are also mentioned.
Earlier this month, France’s financial markets regulator AMF finalised its approach to the advertising of CFDs. This reflected the introduction of the “Sapin 2” law, which prohibits all forms of advertising of risky financial products like binary options. IG has already published a comment regarding the new rules and in today’s report noted that “the outcome was more favourable than anticipated last year. The key advertising restrictions do not affect the main account IG now provides in France, the Limited Risk Account, and do not impact the current client base.”