The toxic bucket shops must be stopped – Netherlands joins France and Belgium in outlawing binary options and some CFDs

“The mindless minority spoiling it for the sensible majority” were words commonly used by school masters in Britain in the early 1980s when administering group punishments for transgressions committed by notorious trouble makers. In such circumstances, the entire class would be removed of their freedoms and made to stand outside, forming an immaculate line, in […]

GTX launches market data binary protocols to ECN clients

“The mindless minority spoiling it for the sensible majority” were words commonly used by school masters in Britain in the early 1980s when administering group punishments for transgressions committed by notorious trouble makers.

In such circumstances, the entire class would be removed of their freedoms and made to stand outside, forming an immaculate line, in the British winter, in silence instead of enjoying free time to spend with friends, the majority having never erred once, but being held to account as a result of the actions of one or two bad influences on the periphery.

This is currently very similar to the blanket bans that are taking place across Europe of binary options and CFD products, and in some cases retail FX.

Today, the Dutch authorities set their wheels in motion to ban binary options advertising and some CFD products.

The Authority for Financial Markets (AFM) in Holland is absolutely right in banning binary options, as such products are fraudulent and operated by entities whose leaders have absolutely nothing whatsoever in common with the genuine electronic trading industry, instead rising from the affiliate marketing, lead buying (or lead stealing in some cases!), adult entertainment and online gambling sectors, having designed platforms that falsely resemble an electronic trading environment in order to run a gambling system that is weighted in favor of the house under the false pretenses that customers are investing in financial markets.

Dutch finance minister Jeroen Dijsselbloem said in parliament that consultations between the ministry and the regulator are already underway.In AFM’s view, stepping up the protection of consumers against the marketing of providers of “toxic investments” is a step in the right direction, as it often involves financial instruments with a large leverage resulting in considerable losses.

The net is closing in on the entire binary options business, with many global governments and regulators having put a stop to it, and mainstream media across the world exposing the fraudulent nature of the entire business sector.

Binary options have been banned in France, Belgium, the US, Israel and now Holland, and will never be categorized as a financial markets product in Britain, government officials are now in the process of making new laws against it, all of which is good news and will serve to preserve the real electronic trading industry from this shadow that is being cast by binary options con men.

As a result of FinanceFeeds efforts in conjunction with British police and media, premier league football teams, once the darling of the binary options firms, are beginning to drop sponsorship deals due to the back street nature of the business.

Whilst Holland’s actions in banning the advertising of binary options is laudable indeed, the downside is that certain CFD products are also about to be banned, meaning that bona fide firms with top quality product ranges run by executives with the most knowledgeable and astute attitude toward business are now being made to suffer.

This is now being looked into by Germany’s BaFin, and could well occur there next.

It is in the great interests of this industry that those within the institutional and retail electronic brokerage industry and all of the ancillary services providers that surround and support it distance themselves as far as possible from binary options businesses, in order that the ability to work in a dignified manner in all jurisdictions is preserved.

FinanceFeeds remains committed to the support of, and to being an integral part of the bona fide electronic trading industry worldwide, and considers that the differential must be made between binary options and FX for the greater good of sustainability in all markets globally.

Read this next

Digital Assets

Luxembourg’s regulator warns on false regulation of Crypto Capital Profits

The regulator of Luxembourg’s financial markets, the Commission de Surveillance du Secteur Financier (CSSF), has warned that a firm claiming to be authorized under the name Crypto Capital Profits is in fact not licensed to carry out business from within its jurisdiction.

Institutional FX

FINRA fines Wedbush $900K over reporting violations

The Financial Industry Regulatory Authority continues to take disciplinary actions against financial services firms for providing inaccurate securities trading information.

Digital Assets

Bitkub investigated by Thai regulator in ‘wash trading’ case

Thailand’s Securities and Exchange Commission has targeted Bitkub over allegations of inaccurate reporting and wash trading on its cryptocurrency platform.

Crypto Insider

Crypto.com secures approval to launch its services in France

Crypto.com has registered its cryptocurrency services with the dual regulatory structure in France, which includes the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).

Inside View

How to offer iOS compliant trading apps? Editorial by Chris Rowe

Webtraders are becoming increasingly important for FX and CFD brokers as more and more of their clients are trading using their mobiles. 

Institutional FX

SpiderRock deploys Eventus trade surveillance for futures and options offering

“As we have begun to provide direct market access as a routing broker and grown in our futures offering, which is subject to a different regulator, we wanted to make sure we chose a trade surveillance platform that has all the tools that we need, a format we can review easily, and capabilities to demonstrate to regulators that we have the proper trade surveillance procedures in place. Validus checks all the boxes for us.”

Industry News

Space and Time raises $20 million to grow its decentralized data warehouse

“We look forward to seeing the ways in which Space and Time will allow the business logic in centralized systems to be automated and connected directly to smart contracts.”

Digital Assets

Mastercard, hi app partner to issue cards with NFT avatars

In partnership with Mastercard, crypto and fiat financial app hi is launching what it calls “the world’s first debit card featuring NFT avatar customization.”

Digital Assets

Wirex to support government of Uzbekistan to adopt blockchain

“We’re excited to work alongside the Uzbekistan Direct Investment Fund in order to help the sector thrive, enrich the financial ecosystem there and set a benchmark for other countries, and ultimately expand.”

<