OANDA and the binary options provocation
OANDA had to reply to a request to “secure the credibility of the binary options market”.
As many regulators across the globe focus their efforts on extinguishing binary options fraud, there are certain industry participants that simply fail to recognize that there is a big sign that says “Game Over” for this sort of offering in numerous jurisdictions. As the fight against binary options scams gathers speed, so do outrageous requests from certain individuals. One such startling request has recently been directed at OANDA, which was asked to “get the ball rolling towards binary options”.
Below is the request:
“Greetings and thanks to Oanda for the profitable experience I’ve enjoyed thus far.
This post is directed towards Oanda Platform and Product Seekers and Developers, there is a High Demand for Binary Options, and if Oanda should be so kind as to Consider adding Binary Options to the platform.
I know I’m not the Only one whom has Interest in Binary Options, therefore, All Other Traders are More than Welcome to Voice their Support for Oanda Introducing Binary Options.
I got into Forex by way of Forex’s Cousin Binary Options, as we know Binary Options are a Hot Commodity Right Now, and what better way to Complement an already Excellent Broker Such as Oanda, by adding Binary Options to the table? As well as another means for traders with Oanda to trade their favorite Currency Pairs, Indexes, and Commodities.
Truthfully Binary Options has only made my Forex trading that much better, and Forex Traders will acquire Quicker, & Keener Technical Analysis Abilities by making quicker assessments, while Trading with Binary Options.
I Suggest the Developers Design and Format their platforms Similar to the way Tradorax has both their PC and Mobile Binary Option Platforms Designed. Also be sure to add the Trading Formats such as 60 Sec, 2Min, 5 Min, High/Low, In/Out, Boundary, 20 Min Et Cetera.
European Forex Markets are Not Trust Worthy, and therefore, I am Requesting the Introduction of Binary Options, to Oanda’s Trading Platform.
Oanda, are you Ready for Binary Options?
Now’s the time to Secure a Wide Open Market, while Increasing the Integrity and Credibility of the Binary Options Market!
Oanda, there’s no better time than now to get the ball rolling towards Binary Options, don’t you agree?”
The reply to the request is the following:
“Thank you for your post. We appreciate your enthusiastic endorsement of OANDA and request for binary options. I will pass on your request to our product developers. The introduction of new instruments and products are driven by client requests but can be balanced by regulatory requirements, availability of liquidity, technical requirements and overall cost of implementation.
Please note, I changed the subject line of your original post from OANDA introduces Binary Options to make it more clear that you are requesting this product as opposed to announcing its arrival. Well played though!
All the best in your trading,
OANDA forum moderator”
A rather polite and elusive reply.
OANDA has already “flirted” with binary options back in the days. In 2005, the company introduced Box Options, a mix of binary options and corridor options. That offering was subsequently abandoned, with the company referring to “regulations imposed under the Dodd-Frank Act in the United States and similar initiatives in other major financial centers”.
Currently, as we know, OTC binary options trading is prohibited in the United States, whereas only a couple of exchanges are officially regulated to offer these instruments to US residents.
Canada, which is an important market for OANDA, has speeded up its efforts to tackle binary options fraud. Certain provinces, such as Quebec, are planning radical measures like a ban on most types of binary options.
Regarding the UK, OANDA would need a license from the Gambling Commission to offer binary options. In addition, let’s note that the Financial Conduct Authority (FCA) is about to take over oversight of a some binary options, effective January 3, 2018. This reflects changes envisaged in the Markets in Financial Instruments Directive (MiFID) II.
The demand for all sorts of binary options to be added to the platform is even more off-mark given that even in jurisdictions where binary options trading is formally allowed, there are restrictions on binary options expiries. Even Cyprus is considering prohibiting offer of binary options with tenor of less than 5 minutes.
Overall, OANDA’s forum moderator was obviously trying to be nice. Perhaps, however, that response turned out to be too nice.