Banc De Binary: Difference between revisions

Browse history interactively ← Previous edit Next edit →Content deleted Content addedVisual WikitextInline

Revision as of 06:59, 8 April 2014 view sourceScapestessa (talk \| contribs)27 edits Undid revision 603194303 by Jim1138 Removing marking messages from NADEX and incorrect information about company registration (ET Binary Options is a service company used by Banc De Binary LTD) and more. Read before revert.← Previous edit		Revision as of 10:06, 8 April 2014 view source Black Kite (talk \| contribs)Administrators85,117 edits Reverted 1 edit by Scapestessa (talk): Such huge changed must be discussed on talk first. Article may need to be reprotected if not. (TW)Next edit →
Line 1:		Line 1:
			{{pp-semi-sock\|expiry=18 October 2014\|small=yes}}
	{{Infobox company		{{Infobox company
	\| name = Banc De Binary		\| name = Banc De Binary
	\| logo = File:Banc de Binary logo.gif		\| logo = File:Banc de Binary logo.gif
	\| caption =		\| caption =
	\| type = Private		\| type = Private
	\| foundation = 2009		\| foundation = 2009
			\| location =
	\| location = ], ], ], ]
			\| key_people = Oren Shabat Cohen,<ref>{{cite web\|title=
	\| key_people = Oren Laurent, Company Founder; <ref>http://www.europeanceo.com/business-and-management/2013/01/the-next-generation-of-financier/</ref> <ref>http://www.financialmirror.com/author.php?nid=45</ref> Soteris Flourentzou, Director;<ref>{{cite web\|url=http://www.companydirectorcheck.com/soteris-flourentzou \|title=Soteris Flourentzou profile \| free company director check \|publisher=Companydirectorcheck.com \|date= \|accessdate=2013-11-11}}</ref> Pieris Hadjipieris, Director;<ref>{{cite web\|url=http://www.companydirectorcheck.com/pieris-hadjipieris \|title=Pieris Hadjipieris profile \| free company director check \|publisher=Companydirectorcheck.com \|date= \|accessdate=2013-11-11}}</ref> Sarah Fenwick, Director of Communications;<ref>{{cite web\|url=http://www.financialmirror.com/news-details.php?nid=31168\|title=Banc De Binary tops 200,000 new client accounts\|date=2013-10-08\|quote=The communications team for Cyprus is led by Sarah Fenwick who is the company's Director of Communications.}}</ref> Roy Ogen, General Manager of the Cyprus Headquarters <ref>http://www.goldnews.com.cy/en/financial-services/banc-de-binary--changing-the-face-of-online-trading</ref>
			BancDebinaRy.com Whois Record\|url=http://whois.domaintools.com/bancdebinary.com\|archiveurl=http://archive.is/B9p6X\|archivedate=2013-10-29\|quote="Registrant Name: Oren Shabat Cohen"}}</ref>{{Primary source-inline\|date=October 2013\|BLP=yes}} also known as Oren Shabat<ref>{{cite web\|url=http://www.companydirectorcheck.com/oren-shabat \|title=Oren Shabat profile \| free company director check \|publisher=Companydirectorcheck.com \|date= \|accessdate=2013-11-11\|archiveurl=http://www.webcitation.org/query?url=http%3A%2F%2Fwww.companydirectorcheck.com%2Foren-shabat&date=2013-11-15\|archivedate=2013-11-15}}</ref><ref>{{cite web\|author= \|url=https://www.guru.com/pro/ProjectDetail.aspx?ProjectId=629877&PID=466f5774253242686541&from=search&SortSQ=EarningsDESC \|title=Banc De Binary Iphone Application/Blog \| Job on Guru \|publisher=Guru.com \|date=2010-07-15 \|accessdate=2013-11-13\|archiveurl=http://www.webcitation.org/query?url=https%3A%2F%2Fwww.guru.com%2Fpro%2FProjectDetail.aspx%3FProjectId%3D629877%26PID%3D466f5774253242686541%26from%3Dsearch%26SortSQ%3DEarningsDESC&date=2013-11-15\|archivedate=2013-11-15}}</ref> and Oren Laurent,<ref name=cftc>{{cite web\|url=http://www.cftc.gov/ucm/groups/public/@lrenforcementactions/documents/legalpleading/enfbanccomplaint060513.pdf\|title=U.S. Commodity Futures Trading Commission v. Banc de Binary Ltd. (a/k/a E.T. Binary Options Ltd.), Complaint for Injunctive and Other Equitable Relief and for Civil Monetary Penalties Under the Commodity Exchange Act and Commission Regulations\|quote=Banc de Binary's chief executive officer, Oren Shabat Cohen (a/k/a Oren Laurent), resides in Israel and is the registrant for the website www.bbinary.com.}}</ref> CEO and Director; Soteris Flourentzou, Director;<ref>{{cite web\|url=http://www.companydirectorcheck.com/soteris-flourentzou \|title=Soteris Flourentzou profile \| free company director check \|publisher=Companydirectorcheck.com \|date= \|accessdate=2013-11-11}}</ref> Pieris Hadjipieris, Director;<ref>{{cite web\|url=http://www.companydirectorcheck.com/pieris-hadjipieris \|title=Pieris Hadjipieris profile \| free company director check \|publisher=Companydirectorcheck.com \|date= \|accessdate=2013-11-11}}</ref> Uri Katz, Director;<ref>{{cite web\|url=http://www.companydirectorcheck.com/uri-katz \|title=Uri Katz profile \| free company director check \|publisher=Companydirectorcheck.com \|date= \|accessdate=2013-11-11}}</ref> Yehezkel Shabat, Director;<ref>{{cite web\|url=http://www.companydirectorcheck.com/yehezkel-shabat \|title=Yehezkel Shabat profile \| free company ≠director check \|publisher=Companydirectorcheck.com \|date= \|accessdate=2013-11-11}}</ref><br> Abraham 'Abe' Cofnas, Head Analyst;<ref>{{cite web\|url=http://www.europeanceo.com/business-and-management/2013/01/the-next-generation-of-financier/ \|title=The next generation of financier \|publisher=European CEO \|date=2013-01-27 \|accessdate=2013-11-11}}</ref><ref>{{cite web\|last=Cofnas \|first=Abe \|url=http://www.futuresmag.com/author/abe-cofnas \|title=Abe Cofnas \|publisher=] \|date= \|accessdate=2013-11-11}}</ref> Sarah Fenwick, Director of Communications;<ref>{{cite web\|url=http://www.financialmirror.com/news-details.php?nid=31168\|title=Banc De Binary tops 200,000 new client accounts\|date=2013-10-08\|quote=The communications team for Cyprus is led by Sarah Fenwick who is the company's Director of Communications.}}</ref> Roy Ogen, General Manager of the Cyprus Headquarters <ref>http://www.goldnews.com.cy/en/financial-services/banc-de-binary--changing-the-face-of-online-trading</ref>
	\| employees = 450+
	\| industry = ]		\| industry = ]
	\| homepage =		\| homepage =
	}}		}}
			'''Banc De Binary''', formerly known as '''BO Systems Limited''' and also known as '''BDB Services Limited''' and '''ET Binary Options Ltd.''',<ref name=cftc>{{cite web\|url=http://www.cftc.gov/ucm/groups/public/@lrenforcementactions/documents/legalpleading/enfbanccomplaint060513.pdf\|title=U.S. COMMODITY FUTURES TRADING COMMISSION v. BANC DE BINARY LTD. (A/K/A E.T. BINARY OPTIONS LTD.), COMPLAINT FOR INJUNCTIVE AND OTHER EQUITABLE RELIEF AND FOR CIVIL MONETARY PENALTIES UNDER THE COMMODITY EXCHANGE ACT AND COMMISSION REGULATIONS\|quote=Banc de Binary's chief executive officer, Oren Shabat Cohen (a/k/a Oren Laurent), resides in Israel and is the registrant for the website www.bbinary.com.}}</ref> is an Israeli-Cypriot based enterprise specializing in ] (also known as fixed return options) on assets including ], ], ], and ]. The company operates an online trading website through which customers can buy or sell binary ("call" or "put") options, predicting whether the price of a certain commodity will go up or down in a specific time period.<ref name = "cftc.gov" /> Banc de Binary customers do not execute their trades via a regulated exchange, but are 'betting' against the firm itself, and the firm only profits if the client loses.<ref>http://thefxview.com/2013/08/16/binary-options-vs-forex-trading/</ref><ref>http://www.daytradingcoach.com/binary-options.html</ref> In addition to being blacklisted by the Italian regulator CONSOB,<ref name="cedarfinancescam.com">http://www.cedarfinancescam.com/banc-de-binary-scam/</ref> the company has been charged with several offences by the CTFC and SEC, and trading with US customers has been frozen following an injunction on 1 August 2013.<ref>{{cite web\|url=http://www.sec.gov/litigation/litreleases/2013/lr22767.htm \|title=Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013) \|publisher=Sec.gov \|date= \|accessdate=2013-11-27}}</ref> Charges filed on 7 August in the US stated that Banc de Binary and Oren Shabat Cohen "may be criminally liable under the federal RICO statute". Oren Shabat Cohen and Banc de Binary have refused to appear in court in the US for depositions.<ref name="justia">http://docs.justia.com/cases/federal/district-courts/nevada/nvdce/2:2013cv00993/94851/61/0.pdf</ref> Within the European Union, the company is regulated by the ] (CySEC); elsewhere it does business through BDB Trading, a separately incorporated company.
	'''Banc De Binary''' is an Cypriot based financial enterprise specializing in ] (also known as fixed return options or digital options) on assets including ], ], ], and ]. The company operates an online trading website through which customers can buy or sell binary ("call" or "put") options, predicting whether the price of a certain asset will go up or down in a specific time period.

			The '']'' described it as "a website that allows people to bet on the price of gold, oil or stocks";<ref name = "WSJ">{{cite web\|url=http://online.wsj.com/article/SB10001424127887324798904578529241482337164.html\|title = Regulators Sue Prediction Site, Allege Illegal Options\|publisher = Wall Street Journal \|accessdate = 11 June 2013\|archiveurl=http://www.webcitation.org/6L9hopyb5\|archivedate=2013-11-15}}</ref> the '']'' called it a "betting firm".<ref>{{cite web\|author=] \|url=http://www.thisismoney.co.uk/money/investing/article-2407941/TONY-HETHERINGTON-US-watchdog-takes-bank-Banc-Binary-court--Britain-lets-in.html \|title=US watchdog takes 'bank' Banc de Binary to court...but Britain lets it in \|publisher=] \|date= \|accessdate=2013-11-13\|archiveurl=http://www.webcitation.org/query?url=http%3A%2F%2Fwww.thisismoney.co.uk%2Fmoney%2Finvesting%2Farticle-2407941%2FTONY-HETHERINGTON-US-watchdog-takes-bank-Banc-Binary-court--Britain-lets-in.html&date=2013-11-15\|archivedate=2013-11-15}}</ref>
	In ], a '''binary option''' is a type of ] where the payoff is either some fixed amount of some ] or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called '''all-or-nothing options''', '''digital options''' (more common in forex/interest rate markets), and '''fixed return options''' ('''FROs''') (on the ]).<ref> Investopedia. Retrieved 2013-06-30. </ref> Binary options are usually ] options.

	When buying a binary option the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”/“Up” option or a “Put”/“Down” option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e.g. 30 seconds and up to 30 minutes, an hour ahead or to the close of the trading day.<ref>{{Cite web\|title= What Are Binary Options\|url= http://www.forexpeacearmy.com/forex-forum/learn-forex-binary-options-chief-currency-strategist-huskins-ebook/21402-understanding-forex-currency-binary-options-chapter-1-a.html\|accessdate= 22 February 2012}}</ref>

	Within the European Union, the company is regulated by the ] (CySEC). <ref name = "Cysec">{{cite web\|url=http://www.cysec.gov.cy/licence_members_1_en.aspx\|title = Cyprus Securities and Exchange Commission\|publisher = Cypus Securities and Exchange Commision}}</ref> made the decision to recognized binary options as trading instruments in 2012 and enacted the first international regulation of binary options requiring licensees fulfill obligations that meet local and international law. At its genesis, Banc De Binary and the platform provider SpotOption were the first to become regulated by CySEC. Since then Banc De Binary has requested certification status from the ] (Financial Services Authority- UK) and the FSB (Financial Services Board). Because of Cyprus’ member status in the European Union, Banc De Binary is also regulated by the ImFIB which carries some protections under the ICF (Investors Compensation Fund). This network of regulation allows Banc De Binary to operate in EU countries under the European Economic Arena Passport.

	The '']'' described it as "an innovative website that allows people to trade on the price of gold, oil or stocks";<ref name = "WSJ">{{cite web\|url=http://online.wsj.com/article/SB10001424127887324798904578529241482337164.html\|title = Regulators Sue Prediction Site, Allege Illegal Options\|publisher = Wall Street Journal \|accessdate = 11 June 2013\|archiveurl=http://www.webcitation.org/6L9hopyb5\|archivedate=2013-11-15}}</ref>

	An article in the Independent on Sunday newspaper described it as a "leading City trading firm".<ref>{{cite news\|url=http://www.independent.co.uk/money/spend-save/bluechip-dividends-tipped-to-soar-8458512.html?origin=internalSearch \|title=Blue-chip dividends tipped to soar \|work=] \|date=2013-01-20 \|accessdate=2013-11-11}}</ref>

	==History==		==History==
			In an interview the company's founder stated that the firm was founded on the 15th Jan 2009,<ref>{{cite web\|url=http://www.investing.com/brokers/banc-de-binary/interviews/banc-de-binary-ceo-oren-laurent-opens-up-on-binary-options-169615 \|title=Banc De Binary CEO Oren Laurent Opens Up on Binary Options - with Banc De Binary \|publisher=] \|date= \|accessdate=2013-11-11}}</ref> and that before, he had worked at "NAF Hedge Funds" and "Infinity Private Investment Funds", which he described as hedge funds in New York.<ref>{{cite web\|url=http://orenlaurent.net
			\|title=Oren Laurent, Financial Services
			\|accessdate=2013-10-24
			\|archiveurl=http://web.archive.org/web/20130916114539/http://orenlaurent.net
			\|archivedate=2013-09-16
			\|quote=He obtained employment in various retail Wall Street Firms and then worked in NAF Hedge Funds. He later transferred to Infinity Private Investment Funds.
			}}</ref> The company also claims to have been founded in Seychelles in 2008,<ref>{{cite web\|url=http://www.mybinaryoption.com/banc-de-binary/ \|title=Banc De Binary \|publisher=Mybinaryoption.com \|date=2013-09-04 \|accessdate=2013-11-27}}</ref> and that this is their current trading address.<ref name=tou>{{cite web
			\|url=https://bancdebinary.com/terms-of-use/
			\|title=Terms of Use
			\|archiveurl=http://archive.is/T5OAy
			\|archivedate=2013-11-20
			\|quote=BO Systems Limited (Effective from January 7, 2013 until March 5, 2013) and/or BDB Services Limited (Effective from March 5, 2013) (hereafter the Company)
			The trading address of BDB Services Limited is situated at Suite 106, Premier Building, Victoria, Mahe, Seychelles.

			Outside of the European Union, this website is operated by BDB Services Limited (Incorporated in Seychelles)
			}}</ref> According to their Facebook Page, E.T. Binary Options, the alternative name for Banc de Binary, operates from the Diamond District in Ramat Gan, Israel and it is also publicly listed as having another office in Petah Tikva, Israel.<ref name=facebook>{{cite web\|url=https://www.facebook.com/EtBinaryOptionsLtd?_fb_noscript=1\|title=E.T. Binary Options LTD\|accessdate=2013-10-23\|quote=משרדנו ממוקמים ברמת גן במתחם הבורסה \|archiveurl=http://archive.is/9UMpE\|archivedate=2013-10-23}}</ref><ref name="dundbil">{{cite web\|url=http://israel-business.dundb.co.il/D533695164.aspx \|title=E.T. BINARY OPTIONS LTD LTD - D&B DunsGuide Global - Israel Business \|publisher=Israel-business.dundb.co.il \|date= \|accessdate=2013-11-27}}</ref>

			The CTFC asserted in their complaint against Banc de Binary that its CEO and founder Oren Laurent is an Israeli resident called Oren Shabat Cohen,<ref>http://www.cftc.gov/ucm/groups/public/@lrenforcementactions/documents/legalpleading/enfbanccomplaint060513.pdf</ref> with later court documents placing him in ].<ref name="justia"/> On the Banc de Binary website<ref>{{cite web\|url=https://bancdebinary.com/education-centre/video-library/banc-de-binary-ceo-oren-laurent-interview-2/ \|title=Banc De Binary CEO Oren Laurent - Interview \|publisher=Bancdebinary.com \|date= \|accessdate=2013-11-27}}</ref>
	Banc De Binary was founded in 2009 by American businessman and financier, Oren Laurent.<ref>{{cite news\|url=http://forexmagnates.com/banc-de-binary-in-talks-with-cftc-about-us-regulation/ \|title=Banc De Binary In Talks \|work=ForexMagnates \|date=2013-01-20 \|accessdate=2013-11-11}}</ref>Laurent was recorded saying “After the financial crisis of 2008, I was dismayed at the state of the financial world, embarrassed by what damage many brokers had caused to the economy and the impact this had had on the lives of people worldwide. Banc De Binary began as a dream and vision. The idea was to make a positive contribution to the financial world and offer a product accessible to people everywhere, not just experienced traders.”
			and others<ref>{{cite web
	The 2008 financial crisis coincided with a ruling by the SEC (Securities and Exchange Commission). Following this ruling, binary options were no longer limited to being traded on an exchange. Laurent was one of the founding members of SpotOption, a company which provides the software behind several binary option platforms. Laurent no longer holds any position in the company. He founded the trading platform Banc De Binary, which officially opened for business on 15 January 2009. This was among the first binary options firms to be established after the SEC’s decision.
			\|url=http://orenlaurent.com/
			\|title=Oren Laurent
			\|archiveurl=http://web.archive.org/web/20120726004836/http://www.orenlaurent.com/
			\|archivedate=2012-07-26}}</ref><ref>{{cite web
			\|url=http://www.investing.com/brokers/banc-de-binary/interviews/banc-de-binary-ceo-oren-laurent-opens-up-on-binary-options-169615
			\|title=Banc De Binary CEO Oren Laurent Opens Up on Binary Options - with Banc De Binary
			\|publisher=Investing.com
			\|date=
			\|accessdate=2013-11-27}}</ref> the CEO is called Oren Laurent; however the CTFC called him Oren Shabat Cohen, saying he is also known as Oren Laurent.<ref name=cftc/>

			In an interview, the company's founder claimed that by June 2011 the company had around 20,000 client accounts,<ref name=IU>{{cite web \|url=http://investmentunderground.com/6882/featured/banc-de-binary-ceo-oren-laurent-opens-up-on-binary-options/
	==Non exchange-traded binary options==
			\|date=27 May 2013
			\|first=Susan
			\|last=Wright
			\|title=Banc De Binary CEO Oren Laurent Opens Up on Binary Options
			\|publisher= Investment Underground
			\|accessdate=Aug 11, 2013
			\|archiveurl= http://web.archive.org/web/20130808121044/http://investmentunderground.com/6882/featured/banc-de-binary-ceo-oren-laurent-opens-up-on-binary-options/
			\|archivedate=2013-08-08
			\|quote=Our projections were for 10,000 client accounts by the end of 2011. We'd doubled that number by June.
			}}</ref>{{verify credibility\|date=November 2013}} and in an open letter published by August 2012, he claimed that number was then 200,000.<ref name="BOD1">{{cite web \|url=http://www.binaryoptionsdaily.com/2012/08/27/banc-de-binarys-ceo-oren-laurent-expresses-sincere-thanks/\|title=Banc De Binary’s CEO Oren Laurent Expresses Sincere Thanks \|publisher= BinaryOptionsDaily.com \|accessdate=Aug 11, 2013}}</ref> Banc de Binary have stated that it "is a small company, with approximately 60 employees".<ref name="justia"/>

			An article in the Independent on Sunday newspaper described it as a "leading City trading firm", although it does not have an office in the City of London, and the address the company gives is a virtual office space with no physical presence .<ref>{{cite news\|url=http://www.independent.co.uk/money/spend-save/bluechip-dividends-tipped-to-soar-8458512.html?origin=internalSearch \|title=Blue-chip dividends tipped to soar \|work=] \|date=2013-01-20 \|accessdate=2013-11-11}}</ref><ref>{{cite web\|url=http://bookings.executiveoffices.co.uk/virtual-offices/1-king-street-ec2v-8au \|title=Buy a 1 King Street, EC2V 8AU \|publisher=Bookings.executiveoffices.co.uk \|date= \|accessdate=2013-11-27}}</ref>
	Binary options contracts have long been available ], i.e. sold directly by the issuer to the buyer. They were generally considered "]" instruments and there was no liquid market for trading these instruments between their issuance and expiration. They were often seen embedded in more complex option contracts.

	Since mid-2008 '''binary options websites''' called '''binary option trading platforms''', such as ], have been offering a simplified version of exchange-traded binary options. It is estimated that around 90 such platforms (including white label products) have been in operation as of January 2012, offering options on some 200 underlying assets.

	The platforms offer standardized short-term binary options with a pre-determined profit/loss, that cannot be liquidated (buy or sell to close) before expiry, unless the platform or broker allow such liquidation.{{disputed-inline\|date=October 2013}}

	==Example of a binary options trade==

	A trader who thinks that the EUR/USD price will close at or above 1.2500 at 3:00 p.m. can buy a ] on that outcome. A trader who thinks that the EUR/USD price will close at or below 1.2500 at 3:00 p.m. can buy a ] or sell a call option contract.

	At 2:00 p.m. the EUR/USD price is 1.2490. The trader believes this will increase, so he buys 10 call options for EUR/USD at or above 1.2500 at 3:00 p.m. at a cost of $40 each.

	The risk involved in this trade is known. The trader’s gross profit/loss follows the ‘all or nothing’ principle. He can lose all the money he invested, which in this case is $40 x 10 = $400, or make a gross profit of $100 x 10 = $1000. If the EUR/USD price will close at or above 1.2500 at 3:00 p.m. the trader's net profit will be the payoff at expiry minus the cost of the option: $1000 – $400 = $600.

	The trader can also choose to liquidate (buy or sell to close) his position prior to expiration, at which point the option value is not guaranteed to be $100. The larger the gap between the spot price and the strike price, the value of the option decreases, as the option is less likely to expire ].

	In this example, at 3:00 p.m. the spot has risen to 1.2505. The option has expired in the money and the gross payoff is $1000. The trader's net profit is $600.

	===Business model===

	Banc De Binary does not charge fees from their investors. The profit comes from the difference between the options that expire in the money to options that expire out of the money. This difference can be found by the formula below. In this (for each base asset with same expiry characteristics), '''(W)''' is the in the money option payout in percentage terms (e.g. 1.7), '''(L)''' is the out of the money option payout in percentage terms (e.g. 0.15), '''<math> (V_{1}),(V_{2})</math>''' are the turnovers of transactions made for each outcome (e.g. $1,000), '''(S)''' is the platform's gain.

	:'''<math> S = - </math>'''

	In this example the platform's turnover is $2,000 and its profit is $150 or 7.5% on turnover. As the platform’s gain comes from the above formula, most platforms will be indifferent as to the outcome of a single trade. Note that if '''<math>V_{1}</math>''' is not equal to '''<math>V_{2}</math>''' then the platform will have to act as a market maker. This can cause the platform gain '''(S)''' to be more volatile than in the above formula. In order for a trader to make a long term profit he has to predict correctly roughly 54.5% of the time (depending on in-the-money and out-of-the money payouts).

	==Black–Scholes valuation==
	In the ], the price of the option can be found by the formulas below.<ref>{{Cite book\|last=Hull \|first=John C. \|year=2005 \|title=Options, Futures and Other Derivatives \|publisher=] \|isbn=0-13-149908-4}}</ref> In fact, the ] for the price of a vanilla call option (or put option) can be ] by decomposition a call option into an asset-or-nothing call option minus a cash-or-nothing call option, and similarly for a put – the binary options are easier to analyze, and correspond to the two terms in the Black–Scholes formula.

	In these, ''S'' is the initial stock price, ''K'' denotes the ], ''T'' is the time to maturity, ''q'' is the dividend rate, ''r'' is the ] and <math> \sigma </math> is the ]. <math>\Phi</math> denotes the ] of the ],
	:<math> \Phi(x) = \frac{1}{\sqrt{2 \pi}} \int_{-\infty}^x e^{-\frac{1}{2} z^2} dz. </math>
	and,
	:<math> d_1 = \frac{\ln\frac{S}{K} + (r-q+\sigma^{2}/2)T}{\sigma\sqrt{T}},\,d_2 = d_1-\sigma\sqrt{T}. \,</math>

	===Cash-or-nothing call===
	This pays out one unit of cash if the spot is above the strike at maturity. Its value now is given by,
	:<math> C = e^{-rT}\Phi(d_2). \,</math>

	===Cash-or-nothing put===
	This pays out one unit of cash if the spot is below the strike at maturity. Its value now is given by,
	:<math> P = e^{-rT}\Phi(-d_2). \,</math>

	===Asset-or-nothing call===
	This pays out one unit of asset if the spot is above the strike at maturity. Its value now is given by,
	:<math> C = Se^{-qT}\Phi(d_1). \,</math>

	===Asset-or-nothing put===
	This pays out one unit of asset if the spot is below the strike at maturity. Its value now is given by,
	:<math> P = Se^{-qT}\Phi(-d_1). \,</math>

	===Foreign exchange===
	{{Further\|Foreign exchange derivative}}

	If we denote by ''S'' the FOR/DOM exchange rate (i.e. 1 unit of foreign currency is worth S units of domestic currency) we can observe that paying out 1 unit of the domestic currency if the spot at maturity is above or below the strike is exactly like a cash-or nothing call and put respectively. Similarly, paying out 1 unit of the foreign currency if the spot at maturity is above or below the strike is exactly like an asset-or nothing call and put respectively.
	Hence if we now take <math>r_{FOR}</math>, the foreign interest rate, <math>r_{DOM}</math>, the domestic interest rate, and the rest as above, we get the following results.

	In case of a digital call (this is a call FOR/put DOM) paying out one unit of the domestic currency we get as present value,
	:<math> C = e^{-r_{DOM} T}\Phi(d_2) \,</math>
	In case of a digital put (this is a put FOR/call DOM) paying out one unit of the domestic currency we get as present value,
	:<math> P = e^{-r_{DOM}T}\Phi(-d_2) \,</math>
	While in case of a digital call (this is a call FOR/put DOM) paying out one unit of the foreign currency we get as present value,
	:<math> C = Se^{-r_{FOR} T}\Phi(d_1) \,</math>
	and in case of a digital put (this is a put FOR/call DOM) paying out one unit of the foreign currency we get as present value,
	:<math> P = Se^{-r_{FOR}T}\Phi(-d_1) \,</math>

	===Skew===
	{{Technical\|section\|date=March 2012}}
	In the standard Black-Scholes model, one can interpret the premium of the binary option in the risk-neutral world as the expected value = probability of being in-the-money * unit, discounted to the present value.

	To take ] into account, a more sophisticated analysis based on call spreads can be used.

	A binary call option is, at long expirations, similar to a tight call spread using two vanilla options. One can model the value of a binary cash-or-nothing option, ''C'', at strike ''K'', as an infinitessimally tight spread, where <math>C_v</math> is a vanilla European call:{{Page needed\|date=September 2010}},
	:<math> C = \lim_{\epsilon \to 0} \frac{C_v(K-\epsilon) - C_v(K)}{\epsilon} </math>
	Thus, the value of a binary call is the negative of the ] of the price of a vanilla call with respect to strike price:
	:<math> C = -\frac{dC_v}{dK} </math>

	When one takes volatility skew into account, <math>\sigma</math> is a function of <math>K</math>:
	:<math> C = -\frac{dC_v(K,\sigma(K))}{dK} = -\frac{\partial C_v}{\partial K} - \frac{\partial C_v}{\partial \sigma} \frac{\partial \sigma}{\partial K}</math>

	The first term is equal to the premium of the binary option ignoring skew:
	:<math> -\frac{\partial C_v}{\partial K} = -\frac{\partial (S\Phi(d_1) - Ke^{-rT}\Phi(d_2))}{\partial K} = e^{-rT}\Phi(d_2) = C_{noskew}</math>

	<math>\frac{\partial C_v}{\partial \sigma}</math> is the ] of the vanilla call; <math>\frac{\partial \sigma}{\partial K}</math> is sometimes called the "skew slope" or just "skew". Skew is typically negative, so the value of a binary call is higher when taking skew into account.
	:<math> C = C_{noskew} - Vega_v * Skew</math>

	===Relationship to vanilla options' Greeks===
	Since a binary call is a mathematical derivative of a vanilla call with respect to strike, the price of a binary call has the same shape as the delta of a vanilla call, and the delta of a binary call has the same shape as the gamma of a vanilla call.

	==Interpretation of prices==
	In a ], binary options are used to find out a population's best estimate of an event occurring – for example, a price of 0.65 on a binary option triggered by the Democratic candidate winning the next US Presidential election can be interpreted as an estimate of 65% likelihood of him winning.

	In financial markets, ]s on a stock or other instrument are already priced into the stock. However, a binary options market provides other information. Just as the regular options market reveals the market's estimate of variance (volatility), i.e. the second ], a binary options market reveals the market's estimate of skew, i.e. the third moment.

	In theory, a portfolio of binary options can also be used to synthetically recreate (or valuate) any other option (analogous to integration), although in practical terms this is not possible due to the lack of depth of the market for these relatively thinly traded securities.

	In theory a portfolio of options can synthetically recreate any other financial instrument, including conventional options.

	==Structured binary options strategies==

	It may come as a surprise to many interested in the options space that put options were not introduced on the CBOE until 1977, nine years after call options were. The binary options market at present is in the same 'no-mans-land' where there is a vibrant FX binary options market with sophisticated binary options strategies, while at the other extreme there are a plethora of platforms offering one-hour bets dressing themselves up as 'investments'.

	But the binary options market too has its range of straddles, strangles, call spreads, butterflies, condors etc.. which as yet have not been explored by the mainstream exchanges. Tunnels, aka rangebets, aka corridors are reasonably well-known and are priced in the manner of a conventional call spread although the tunnel is primarily a volatility trade. Others such as the Duke of York, Tug of War, Accumulators provide a rich seam of varied instruments providing distinct and unique P&L profiles.

	As indicated above, binary options are generally perceived as European-style options that cannot be exercised before expiry. The American-style binary options are out there but are usually referred to as one-touch options. A comprehensive list of binary options strategies would include European and American binary options, 'knock-in' binary options, 'knock-out' binary options and two-asset binary options.

	==Regulation==		==Regulation==
			On 7 January 2013, Banc De Binary was licensed as an investment firm by the Cyprus Securities and Exchange Commission (CySEC).<ref name="CYSEC">{{cite web\|url=http://www.cysec.gov.cy/licence_members_1_en.aspx \|title=Cyprus Securities and Exchange Commission \|publisher=Cysec.gov.cy \|date= \|accessdate=2013-08-17}}</ref><ref name="FinMir">{{cite web \|url=http://www.financialmirror.com/news-details.php?nid=29363\|title=Banc De Binary is first Binary Options Broker in EU \|publisher= Financial Mirror \|accessdate=Aug 11, 2013}}</ref>

	On May 3, 2012, the ] (CySEC) announced a policy change regarding the classification of binary options as financial instruments. The effect is that binary options platforms operating in Cyprus (where many of the platforms are based) will have to be CySEC regulated within six months of the date of the announcement. CySEC was the first EU ]-member regulator to treat binary options as financial instruments.<ref>{{Cite news\|title= regarding the supervision of Binary Options\|url= http://www.cysec.gov.cy/Downloads/English/Announcements/2012/EPEY/Announcement%20%2005.03.2012%20regarding%20the%20supervision%20of%20Binary%20Options.pdf\|work= CySEC\|date= 3 May 2012\|accessdate= 4 June 2012}}</ref>
	On January 7, 2013, ] became the first licensed binary option firm recognized as an investment firm by the Cyprus Securities and Exchange Commission (CySEC)..<ref name="CYSEC">{{cite web\|url=http://www.cysec.gov.cy/licence_members_1_en.aspx \|title=Cyprus Securities and Exchange Commission \|publisher=Cysec.gov.cy \|date= \|accessdate=2013-08-17}}</ref><ref name="FinMir">{{cite web \|url=http://www.financialmirror.com/news-details.php?nid=29363\|title=Banc De Binary is first Binary Options Broker in EU \|publisher= Financial Mirror \|accessdate=Aug 11, 2013}}</ref>

	Investment firms regulated by CySEC must demonstrate to CySEC that their activities comply with the laws of any non-] countries where they do business.<ref>{{cite web\|url=http://forexmagnates.com/get-out-cysec-bans-fx-firms-from-accepting-non-eu-clients/\|title=Get Out! CySEC Bans FX Firms From Accepting Non-EU Clientswork=Forex Magnates\|accessdate=2013-10-16\|archiveurl=http://web.archive.org/web/20130806024248/http://forexmagnates.com/get-out-cysec-bans-fx-firms-from-accepting-non-eu-clients/\|archivedate=2013-08-06\|quote= brokers which operate under the CySEC license will no longer be able to solicit business outside of the European Union, unless a potential client who resides in a non-EU member state can provide written authorization from the domestic financial markets regulator in the nation which that person is resident }}</ref><ref name="cysec-circular">{{cite web \| url=http://www.cysec.gov.cy/Downloads/Circulars/2013/EPEY/Circular%20CI144-2013-22%20to%20CIFs%20-%20cross%20border%20services%20to%20third%20countries.pdf \| title=Freedom to provide investment and ancillary services and or perform investment activities in a third country \| publisher=Cyprus Securities and Exchange Commission \| work=Circular CI144-2013-22 \| date=2013-07-26 \| accessdate=2013-11-11\|archiveurl=http://web.archive.org/web/20130814201432/http://www.cysec.gov.cy/Downloads/Circulars/2013/EPEY/Circular%20CI144-2013-22%20to%20CIFs%20-%20cross%20border%20services%20to%20third%20countries.pdf\|archivedate=2013-08-14\|quote= The Commission allows, pursuant to section 79(4) of the Law, the provision of investment and ancillary services and/or the performance of investment services within the territory of a third country provided that CIFs, before commencing any activity, will take all necessary measures to ensure that they will comply with the relevant legal provisions of the third country.}}</ref> According to the company, its operations "outside of the European Union" are conducted by BDB Services Limited (formerly known as BO Systems Limited), which is incorporated in the ].<ref name=tou>{{cite web		Investment firms regulated by CySEC must demonstrate to CySEC that their activities comply with the laws of any non-] countries where they do business.<ref>{{cite web\|url=http://forexmagnates.com/get-out-cysec-bans-fx-firms-from-accepting-non-eu-clients/\|title=Get Out! CySEC Bans FX Firms From Accepting Non-EU Clientswork=Forex Magnates\|accessdate=2013-10-16\|archiveurl=http://web.archive.org/web/20130806024248/http://forexmagnates.com/get-out-cysec-bans-fx-firms-from-accepting-non-eu-clients/\|archivedate=2013-08-06\|quote= brokers which operate under the CySEC license will no longer be able to solicit business outside of the European Union, unless a potential client who resides in a non-EU member state can provide written authorization from the domestic financial markets regulator in the nation which that person is resident }}</ref><ref name="cysec-circular">{{cite web \| url=http://www.cysec.gov.cy/Downloads/Circulars/2013/EPEY/Circular%20CI144-2013-22%20to%20CIFs%20-%20cross%20border%20services%20to%20third%20countries.pdf \| title=Freedom to provide investment and ancillary services and or perform investment activities in a third country \| publisher=Cyprus Securities and Exchange Commission \| work=Circular CI144-2013-22 \| date=2013-07-26 \| accessdate=2013-11-11\|archiveurl=http://web.archive.org/web/20130814201432/http://www.cysec.gov.cy/Downloads/Circulars/2013/EPEY/Circular%20CI144-2013-22%20to%20CIFs%20-%20cross%20border%20services%20to%20third%20countries.pdf\|archivedate=2013-08-14\|quote= The Commission allows, pursuant to section 79(4) of the Law, the provision of investment and ancillary services and/or the performance of investment services within the territory of a third country provided that CIFs, before commencing any activity, will take all necessary measures to ensure that they will comply with the relevant legal provisions of the third country.}}</ref> According to the company, its operations "outside of the European Union" are conducted by BDB Services Limited (formerly known as BO Systems Limited), which is incorporated in the ].<ref name=tou>{{cite web
Line 146:		Line 69:
	The trading address of BDB Services Limited is situated at Suite 106, Premier Building, Victoria, Mahe, Seychelles.		The trading address of BDB Services Limited is situated at Suite 106, Premier Building, Victoria, Mahe, Seychelles.

			Outside of the European Union, this website is operated by BDB Services Limited (Incorporated in Seychelles)
	}}</ref>		}}</ref>

			The Financial Services Register maintained by the UK's ] states that from 25 February 2013 the company "is authorised or registered by ... ... and may be subject to limited regulation by the Financial Conduct Authority".<ref name="BancDeBinaryFSA">{{cite web\| title=Financial Services Register 2013\| location = \| pages = \| language = \| publisher = Bank of England Financial Services Register\| date = Jun 2013\| url =http://www.fsa.gov.uk/register/firmRegulator.do?sid=314566\| accessdate =8 July 2013}}</ref> The company has similar licences in Germany,<ref>{{cite web\|author=BaFin \|url=https://portal.mvp.bafin.de/database/InstInfo/institutDetails.do?cmd=loadInstitutAction&institutId=131401 \|title=BaFin – Unternehmensdatenbank BaFin \|language={{de icon}} \|publisher=Portal.mvp.bafin.de \|date= \|accessdate=2013-08-17}}</ref> Italy, where it is now blacklisted by CONSOB,<ref name="cedarfinancescam.com"/><ref>{{cite web\|url=http://www.consob.it/mainen/documenti/english/intermediaries/albi/COM.html?symblink=/mainen/intermediares/investments_firms/com_lnk.html \|title=Consob \|publisher=Consob.it \|date= \|accessdate=2013-08-17}}</ref> France,<ref>{{cite web\|url=https://www.regafi.fr/spip.php?type=simple&id_secteur=1&lang=fr&denomination=banc+de+binary&page=af&id=3880 \|title=Fiche agent financier – REGAFI – Registre des agents financiers \|publisher=Regafi.fr \|date= \|accessdate=2013-08-17}}</ref> and Spain.<ref>{{cite web\|url=http://www.cnmv.es/Portal/Consultas/ESI/ESISExtranjerasLP.aspx?numero=3370&tipo=CLP \|title=CNMV – Empresas de servicios de inversión extranjeras en libre prestación \|publisher=Cnmv.es \|date=2013-01-24 \|accessdate=2013-08-17}}</ref> In accordance with the ], the company has "passported" into almost all member states of the EEA; MiFID allows companies to provide financial services primarily regulated by their home state rather than the state where the customer resides,<ref name="CySECList">{{cite web \|url=http://www.cysec.gov.cy/licence_members_14_en.aspx\|title=Cypriot Investment Firm offering cross-border services to Member States \|publisher= CySEC \|accessdate=Aug 11, 2013}}</ref> but clients based in other countries would receive nothing if the company collapsed.<ref name="thisismoney.co.uk">{{cite news\|url=http://www.thisismoney.co.uk/money/investing/article-2407941/TONY-HETHERINGTON-US-watchdog-takes-bank-Banc-Binary-court--Britain-lets-in.html\|author=]\|title=US watchdog takes 'bank' Banc de Binary to court...but Britain lets it in\|work=]\|accessdate=2013-10-16}}</ref>
	Banc De Binary are also fully compliant with the ].<ref name="CySEC">{{cite web \|url=http://www.cysec.gov.cy/licence_members_1_en.aspx\|title=Regulated Investment Firms \|publisher= CySEC \|accessdate=Aug 11 2013}}</ref>
	In accordance with MiFID, Banc De Binary has passported into almost all member states of the EEA and have notified the relevant financial regulators in such states that it provides services to residents of such states. The list below shows regulators who have accepted the Banc De Binary passporting notice:<ref name="CySECList">{{cite web \|url=http://www.cysec.gov.cy/licence_members_14_en.aspx\|title=Cypriot Investment Firm offering cross-border services to Member States \|publisher= CySEC \|accessdate=Aug 11 2013}}</ref>
	], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ].<ref name="FSAReg">{{cite web \|url=http://www.fsa.gov.uk/register/firmRegulator.do?sid=314566\|title=Financial Services Register 2013 \|publisher= FSA \|accessdate=Jul 8 2013}}</ref>
	<ref name="BaFIN">{{cite web \|url=https://portal.mvp.bafin.de/database/InstInfo/institutDetails.do?cmd=loadInstitutAction&institutId=131401\|title=Unternehmen \|publisher= BaFIN \|accessdate=Aug 11 2013}}</ref>
	<ref name="CONSOB">{{cite web \|url=http://www.consob.it/mainen/documenti/english/intermediaries/albi/COM.html?symblink=/mainen/intermediares/investments_firms/com_lnk.html\|title=REGISTER OF EU INVESTMENT FIRMS: WITHOUT BRANCHES (DATE 08/08/2013) \|publisher= CONSOB \|accessdate=Aug 11 2013}}</ref>
	<ref name="BDF">{{cite web \|url=https://www.regafi.fr/spip.php?type=simple&id_secteur=1&lang=fr&denomination=banc+de+binary&page=af&id=3880\|title=Résultat de votre recherche \|publisher= Banque De France \|accessdate=Aug 11 2013}}</ref>
	<ref name="CNMV">{{cite web \|url=http://www.cnmv.es/Portal/Consultas/ESI/ESISExtranjerasLP.aspx?numero=3370&tipo=CLP\|title=Empresas de Servicios de Inversión del Espacio Económico Europeo en Libre Prestación \|publisher= CNMV \|accessdate=Aug 11 2013}}</ref>

			A 2013 investigation by the British ''Daily Mail'' newspaper journalist ] alleged that one client had $25,000 stolen from his bank account after signing up with them.<ref name="thisismoney.co.uk"/>
	The Financial Services Register maintained by the UK's ] states that from 25 February 2013 the company "is authorized or registered by ... ... and may be subject to limited regulation by the Financial Conduct Authority".<ref name="BancDeBinaryFSA">{{cite web\| title=Financial Services Register 2013\| location = \| pages = \| language = \| publisher = Bank of England Financial Services Register\| date = Jun 2013\| url =http://www.fsa.gov.uk/register/firmRegulator.do?sid=314566\| accessdate =8 July 2013}}</ref> The company has similar licenses in Germany,<ref>{{cite web\|author=BaFin \|url=https://portal.mvp.bafin.de/database/InstInfo/institutDetails.do?cmd=loadInstitutAction&institutId=131401 \|title=BaFin – Unternehmensdatenbank BaFin \|language={{de icon}} \|publisher=Portal.mvp.bafin.de \|date= \|accessdate=2013-08-17}}</ref> Italy,<ref>{{cite web\|url=http://www.consob.it/mainen/documenti/english/intermediaries/albi/COM.html?symblink=/mainen/intermediares/investments_firms/com_lnk.html \|title=Consob \|publisher=Consob.it \|date= \|accessdate=2013-08-17}}</ref> France,<ref>{{cite web\|url=https://www.regafi.fr/spip.php?type=simple&id_secteur=1&lang=fr&denomination=banc+de+binary&page=af&id=3880 \|title=Fiche agent financier – REGAFI – Registre des agents financiers \|publisher=Regafi.fr \|date= \|accessdate=2013-08-17}}</ref> and Spain.<ref>{{cite web\|url=http://www.cnmv.es/Portal/Consultas/ESI/ESISExtranjerasLP.aspx?numero=3370&tipo=CLP \|title=CNMV – Empresas de servicios de inversión extranjeras en libre prestación \|publisher=Cnmv.es \|date=2013-01-24 \|accessdate=2013-08-17}}</ref> In accordance with the ], the company has "passported" into almost all member states of the EEA; MiFID allows companies to provide financial services primarily regulated by their home state rather than the state where the customer resides.<ref name="CySECList">{{cite web \|url=http://www.cysec.gov.cy/licence_members_14_en.aspx\|title=Cypriot Investment Firm offering cross-border services to Member States \|publisher= CySEC \|accessdate=Aug 11, 2013}}</ref>

	==American Regulatory Battles==

	The company received a complaint by the US Federal Security and Exchange Commission filed on June 5, 2013 (Civil Action No. 2:13-CV-00993-RCJ-VCF), alleging that Banc de Binary had been offering and selling binary options to investors across the U.S. without first registering the securities as required under the federal securities laws. A request for deposition was made via the Nevada courts, yet to date no charges by the US Securities Commission were filed against the company or its staff.

	In a message posted on its Web site,<ref>{{cite web\|url=http://l.bbinary.com/Notice/ \|title=Binary Options Trading Online with Banc De Binary \|date= \|accessdate=2013-08-17\|archiveurl=http://archive.is/B9p6X\|archivedate=2013-08-17}}</ref> the company stated that {{quote\|1= Banc De Binary is voluntarily discontinuing its operations in the United States. The United States Commodity Futures Trading Commission and Securities and Exchange Commission have asserted that Banc De Binary is not permitted to offer its binary option products to U.S. residents without registering with those agencies. We are currently in discussions with the CFTC and SEC about these issues, but in the interim, we have discontinued all business with U.S. residents.}}

	==Products and services==		==Products and services==
			The company allows people to place predictions on changes in the price of various assets by using a pricing platform provided by another Israeli company, Spotoption, and customised by Banc de Binary. Customers do not own the asset but instead predict whether its price will rise or fall.<ref>http://www.spotoption.com/binaryoptions/what-are-binary-options/</ref> Spotoption also provide similar services for around 170 other binary options brokers.<ref>http://www.spotoption.com/brands/</ref> Banc de Binary's role is to create accounts for customers as a reseller of Spotoption's services. The company offers several kinds of options; customers can make predictions of the price of over 200 global assets including ], ], ], and ] using several variations of the trading platform including classic ],<ref name="INVESTO">{{cite web \|url=http://www.investopedia.com/terms/b/binary-option.asp\|title=Binary Option \|publisher= investopedia.com \|accessdate=Aug 11, 2013}}</ref> long term options, sixty seconds,<ref name="BOW">{{cite web \|url=http://www.binaryoptionswire.com/60-second-binary-option-trading-strategy/\|title=60 Second Binary Option Trading Strategy \|publisher= Nancy Eleutheriou \|accessdate=Aug 11, 2013}}</ref> one touch (boundary options),<ref name="INVESTO2">{{cite web \|url=http://www.investopedia.com/terms/o/onetouchoption.asp\|title=One-Touch Option \|publisher= investopedia.com \|accessdate=Aug 11, 2013}}</ref> and pairs trading.

	The company allows people to place predictions on changes in the price of various assets by using a pricing platform provided by another company, Spotoption, and customised by Banc de Binary. Customers do not own the asset but instead predict whether its price will rise or fall.<ref>http://www.spotoption.com/binaryoptions/what-are-binary-options/</ref> Spotoption also provide similar pricing services for other binary options brokers.<ref>http://www.spotoption.com/brands/</ref> The company offers several kinds of options; customers can make predictions of the price of over 200 global assets including ], ], ], and ] using several variations of the trading platform including classic ],<ref name="INVESTO">{{cite web \|url=http://www.investopedia.com/terms/b/binary-option.asp\|title=Binary Option \|publisher= investopedia.com \|accessdate=Aug 11, 2013}}</ref> long term options, sixty seconds,<ref name="BOW">{{cite web \|url=http://www.binaryoptionswire.com/60-second-binary-option-trading-strategy/\|title=60 Second Binary Option Trading Strategy \|publisher= Nancy Eleutheriou \|accessdate=Aug 11, 2013}}</ref> one touch (boundary options),<ref name="INVESTO2">{{cite web \|url=http://www.investopedia.com/terms/o/onetouchoption.asp\|title=One-Touch Option \|publisher= investopedia.com \|accessdate=Aug 11, 2013}}</ref> and pairs trading.

	== Awards ==

	* 2013, Global Leadership and Excellence in Binary Option Trading, '''IAIR''' <ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref> <ref name = "Investing.com">{{cite web\|url=http://www.investing.com/brokers/banc-de-binary/press-releases/banc-de-binary-receives-iair-award-for-excellence-in-binary-options-trading-190782\|title = Investing.com\|publisher = Investing.com\|accessdate = 1 March 2014}}</ref> <ref name = "IAIR Awards">{{cite web\|url=http://www.iairawards.com/the_iair_awards_2013_milan.php\|title = IAIR Awards\|publisher = IAIR\|accessdate = 1 March 2014}}</ref>
	* 2013, Gold Award for Best European Broker, '''Binary Options Leader''' (BOL) <ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref> <ref name = "Binary Options Leader">{{cite web\|url=http://www.binaryoptionsleader.com/the-binary-options-leader-broker-awards-2013/\|title = Binary Options Leader awards\|publisher = Binary Options Leader\|accessdate = 1 March 2014}}</ref>
	* 2013, Best Trading Platform, '''Binary Option Strategy''' <ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref> <ref name = "Binary Options Strategy">{{cite web\|url=http://www.binaryoptionstrategy.com/\|title = Binary Options Strategy awards\|publisher = Binary Options Strategy\|accessdate = 11 June 2013}}</ref>
	* 2013, Best Binary Options Broker in the Middle East 2013, '''JFEX'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref> <ref name="JFEA">{{cite web \|url=http://www.jordanforexexpo.net/Previous%20Events/8th%20Jordan%20Forex%20Expo/index.html\|title=JEFX AWARD 2013 Winners \|publisher= Jordan Forex Expo and Award 13 \|accessdate=Aug 11, 2013}}</ref><ref name="icn">{{cite web \|url=http://www.icn.com/en/pressreleases/2013/05/13/FORSEX-industry-celebrates-the-JFEX-2013-Awards-winners-/index.html\|title=FOREX industry celebrates the JFEX 2013 awards winners \|publisher= ICN.com \|accessdate=Aug 11, 2013}}</ref>
	* 2013, Corporate Governance Award, '''] Magazine'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref>
	* 2012, Best Binary Options Customer Service, '''ForexTraders'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref> <ref name="FXT">{{cite web \|url=http://www.forextraders.com/\|title=Forex Traders \|publisher= ForexTraders.com \|accessdate=Mar 1, 2013}}</ref>
	* 2012, World Finance 100, '''] Magazine'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref> <ref name="WF100">{{cite web \|url=http://2011.worldfinance100.com/banc-de-binary/\|title=Banc De Binary World Finance 100 Profile \|publisher= World Finance 100 \|accessdate=Aug 11, 2013}}</ref>
	* 2012, Best Binary Options Platform in North America, '''] Magazine'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref>
	* 2012, Best Binary Options Platform in Asia, '''] Magazine'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref>
	* 2012, Most Secure Binary Broker, '''Moat & Bailey'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref>
	* 2011, Best Customer Service, '''Forex News Now'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref>
	* 2011, Best Customer Service, '''FX Empire'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref> <ref name="FXE">{{cite web \|url=http://www.fxempire.com/\|title=FXEmpire \|publisher= FXEmpire \|accessdate=Jan 1, 2013}}</ref>
	* 2011, Broker of the Year, '''Binary Options Daily'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref> <ref name="BOD">{{cite web \|url=http://www.binaryoptionsdaily.com\|title=Binary Options Daily \|publisher= BinaryOptionsDaily.com \|accessdate=Jan 1, 2013}}</ref>
	* 2011, Platform of the Year, '''Binary Options Daily'''<ref name = "BBI">{{cite web\|url=https://bancdebinary.com/about-us/awards-received/\|title = Banc de Binary awards\|publisher = Banc de Binary\|accessdate = 11 June 2013}}</ref> <ref name="BOD">{{cite web \|url=http://www.binaryoptionsdaily.com\|title=Binary Options Daily \|publisher= BinaryOptionsDaily.com \|accessdate=Jan 1, 2013}}</ref>

	== Internet presence ==		== Internet presence ==

	As of March 2014, the following domain names (and possibly others) were registered in the company's name:		As of March 2014, the following domain names (and possibly others) were registered in the company's name:
	*bbinary.com<ref>{{cite web\|url=http://whois.domaintools.com/bbinary.com		*bbinary.com<ref>{{cite web\|url=http://whois.domaintools.com/bbinary.com
Line 211:		Line 104:
	\|archivedate= 2013-12-04		\|archivedate= 2013-12-04
	\|quote=Admin Email: email@bbinary.com}}</ref>		\|quote=Admin Email: email@bbinary.com}}</ref>
			*bancdebinary.org<ref>{{cite web
			\|url= http://whois.domaintools.com/bancdebinary.org
			\|title= BancDebinaRy.org Whois Record
			\|accessdate= 2013-12-04
			\|archiveurl= http://archive.is/DocVs
			\|archivedate= 2013-12-04
			\|quote=Registrant Organization:Banc De Binary}}</ref>
			*easytradeonline.us<ref>{{cite web\|url=http://whois.domaintools.com/easytradeonline.us
			\|title=EasyTradeOnline.us Whois Record
			\|accessdate=2013-10-24
			\|archiveurl=http://archive.is/ZoRTq
			\|archivedate=2013-10-24
			\|quote=Registrant Organization: Banc De Binary
			}}</ref>
			*binarybank.asia<ref>{{cite web\|url=http://whois.domaintools.com/binarybank.asia
			\|title=BinaryBank.asia Whois Record
			\|accessdate=2013-10-24
			\|archiveurl=http://archive.is/yonVV
			\|archivedate=2013-10-24
			\|quote=Registrant Organization: Banc De Binary
			}}</ref>
			*bdbaffiliates.us<ref>{{cite web\|url=http://whois.domaintools.com/bdbaffiliates.us
			\|title=BdbAffiliates.us Whois Record
			\|accessdate=2013-10-24
			\|archiveurl=http://archive.is/jj9q8
			\|archivedate=2013-10-24
			\|quote=Registrant Organization: Banc De Binary
			}}</ref>
			*binarybank.us<ref>{{cite web\|url=http://whois.domaintools.com/binarybank.us
			\|title=BinaryBank.us Whois Record
			\|accessdate=2013-10-29
			\|archiveurl=http://archive.is/bVUwO
			\|archivedate=2013-10-29
			\|quote=Registrant Organization: Banc De Binary
			}}</ref>
			*binary-bank.us<ref>{{cite web\|url=http://whois.domaintools.com/binary-bank.us
			\|title=Binary-Bank.us Whois Record
			\|accessdate=2013-10-29
			\|archiveurl=http://archive.is/4LLfA
			\|archivedate=2013-10-29
			\|quote=Registrant Organization: Banc De Binary
			}}</ref>
			*thebinaryoption.us<ref>{{cite web\|url=http://whois.domaintools.com/thebinaryoption.us
			\|title=TheBinaryOption.us Whois Record
			\|accessdate=2013-10-29
			\|archiveurl=http://archive.is/kIrea
			\|archivedate=2013-10-29
			\|quote=Registrant Organization: Banc De Binary
			}}</ref>
			*bbinary.asia<ref>{{cite web\|url=http://whois.domaintools.com/bbinary.asia
			\|title=bBinary.asia Whois Record
			\|accessdate=2013-10-29
			\|archiveurl=http://archive.is/J22za
			\|archivedate=2013-10-29
			\|quote=Registrant Organization: Banc De Binary
			}}</ref>
			*bbinary.eu<ref>{{cite web
			\|url=http://www.eurid.eu/en/whois-search?domain=bbinary.eu
			\|title=WHOIS search
			\|accessdate=2013-12-04
			\|archiveurl=http://web.archive.org/web/20131204065030/http://www.eurid.eu/en/whois-search?domain=bbinary.eu
			\|archivedate=2013-12-04
			\|quote=Organisation Banc De Binary
			}}</ref>
			*binary-bank.eu<ref>{{cite web
			\|url=http://www.eurid.eu/en/whois-search?domain=binary-bank.eu
			\|title=WHOIS search
			\|accessdate=2013-12-04
			\|archiveurl=http://web.archive.org/web/20131204070822/http://www.eurid.eu/en/whois-search?domain=binary-bank.eu
			\|archivedate=2013-12-04
			\|quote=Organisation Banc De Binary
			}}</ref>
			*binarybank.eu<ref>{{cite web
			\|url=http://www.eurid.eu/en/whois-search?domain=binarybank.eu
			\|title=WHOIS search
			\|accessdate=2013-12-04
			\|archiveurl=http://web.archive.org/web/20131204071055/http://www.eurid.eu/en/whois-search?domain=binarybank.eu
			\|archivedate=2013-12-04
			\|quote=Organisation Banc De Binary
			}}</ref>
			*binaryoptions.fm<ref>{{cite web
			\|url=http://whois.domaintools.com/binaryoptions.fm
			\|title=BinaryOptions.fm Whois Record
			\|accessdate=2013-12-04
			\|archiveurl=http://archive.is/mgpSn
			\|archivedate=2013-12-04
			\|quote=Organisation: Banc De Binary
			}}</ref>
			*bdb-partners.com<ref>http://bdb-partners.com/</ref><ref>{{cite web
			\|url=http://whois.domaintools.com/bdb-partners.com
			\|title=Bdb-Partners.com Whois Record
			\|accessdate=2014-03-27
			\|quote=Registrant Name: Yeheshkiel Shabat
			Registrant Organization: ET Options
			}}</ref><!-- archived at archive dot is slash v7WeN -->

			The domain bancdebinary.eu was registered to "Cronon AG Professional IT-Services".<ref>{{cite web
			\|url=http://www.eurid.eu/en/whois-search?domain=bancdebinary.eu
			\|title=WHOIS search
			\|accessdate=2013-12-04
			\|archiveurl=http://web.archive.org/web/20131204065950/http://www.eurid.eu/en/whois-search?domain=bancdebinary.eu
			\|archivedate=2013-12-04
			\|quote=Organisation Cronon AG Professional IT-Services
			}}</ref>

			== Awards ==
			* 2013, Best Binary Options Broker in the Middle East 2013, JFEX <ref name="JFEA">{{cite web \|url=http://www.jordanforexexpo.net/Previous%20Events/8th%20Jordan%20Forex%20Expo/index.html\|title=JEFX AWARD 2013 Winners \|publisher= Jordan Forex Expo and Award 13 \|accessdate=Aug 11, 2013}}</ref><ref name="icn">{{cite web \|url=http://www.icn.com/en/pressreleases/2013/05/13/FORSEX-industry-celebrates-the-JFEX-2013-Awards-winners-/index.html\|title=FOREX industry celebrates the JFEX 2013 awards winners \|publisher= ICN.com \|accessdate=Aug 11, 2013}}</ref>
			* 2012, Best Binary Options Customer Service, ForexTraders <ref name="FXT">{{cite web \|url=http://www.forextraders.com/\|title=Forex Traders \|publisher= ForexTraders.com \|accessdate=Mar 1, 2013}}</ref>
			* 2011, World Finance 100, '']'' Magazine<ref name="WF100">{{cite web \|url=http://2011.worldfinance100.com/banc-de-binary/\|title=Banc De Binary World Finance 100 Profile \|publisher= World Finance 100 \|accessdate=Aug 11, 2013}}</ref>
			* 2011, Best Customer Service, FX Empire <ref name="FXE">{{cite web \|url=http://www.fxempire.com/\|title=FXEmpire \|publisher= FXEmpire \|accessdate=Jan 1, 2013}}</ref>
			* 2011, Broker of the Year, Binary Options Daily <ref name="BOD">{{cite web \|url=http://www.binaryoptionsdaily.com\|title=Binary Options Daily \|publisher= BinaryOptionsDaily.com \|accessdate=Jan 1, 2013}}</ref>
			* 2011, Platform of the Year, Binary Options Daily <ref name="BOD" />

			==US regulatory issues==
	==External links==
			Banc de Binary claimed to have an office in ] at ], but this was in fact a virtual office space with no significant physical presence.<ref name="seccomplaint">{{cite web\|url=https://www.sec.gov/litigation/complaints/2013/comp-pr2013-103.pdf\|title=SECURITIES AND EXCHANGE COMMISSION vs. BANC DE BINARY LTD, complaint\|quote=Banc de Binary maintained a virtual office on Wall Street}}</ref> Trading and offering financial services to US consumers without gaining a license first from US regulators is illegal, as it would mean the client would have no protection. The company also claims on its site at its UK Companies House report<ref>{{cite web\|url=http://wck2.companieshouse.gov.uk//companysearch?disp=1&frfsh=1382112367&#result \|title=Companies House WebCheck \|publisher=Wck2.companieshouse.gov.uk \|date= \|accessdate=2013-10-18}}</ref> to have an office at 1 King Street, EC2, in the ], but this, like its New York City address, is a virtual office with no physical presence.<ref>{{cite web\|url=http://bookings.executiveoffices.co.uk/virtual-offices/1-king-street-ec2v-8au \|title=Buy a 1 King Street, EC2V 8AU \|publisher=Bookings.executiveoffices.co.uk \|date= \|accessdate=2013-10-18}}</ref> Banc de Binary's UK Companies House report says that they are based in Cyprus.

			On 6 June 2013, Banc De Binary was charged by both the ] and the ] for alleged violations of US financial regulations. In the same press release the CFTC warned more generally of "fraudulent schemes involving binary options and their trading platforms".<ref name="cftc.gov">{{cite web
	*
			\|url=http://www.cftc.gov/PressRoom/PressReleases/pr6602-13
	*
			\|title=CFTC Charges "Prediction Market" Proprietor Banc de Binary with Violating the CFTC’s Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant
	*
			\|accessdate=2013-10-16
	*
			\|archiveurl=http://web.archive.org/web/20130819132836/http://www.cftc.gov/PressRoom/PressReleases/pr6602-13
	*
			\|archivedate=2013-08-19
	*
			\|deadurl=no}}</ref>
	*
			On 30 July 2013 the SEC obtained a preliminary injunction from U.S. District Court for the District of Nevada to prevent and freeze any further trading with US customers.<ref>{{cite web\|url=http://www.sec.gov/litigation/litreleases/2013/lr22767.htm \|title=Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013) \|publisher=Sec.gov \|date= \|accessdate=2013-10-18}}</ref> Binary trading in the US is legal, but only if done through properly registered and regulated exchanges such as ].<ref>{{cite web\|url=http://www.nadex.com/why-nadex/legal-for-us-residents.html \|title=Binary Options Legal US \|publisher=Nadex.com \|date= \|accessdate=2013-10-18}}</ref><ref name="FM">{{cite web\|url=http://forexmagnates.com/banc-de-binary-gets-charged-by-the-cftc-investor-warning-also-issued-across-the-us/\|title = Banc De Binary: Gets Charged by the CTFC\| publisher = ForexMagnates \| accessdate = 19 June 2013}}</ref><ref name="FxView">{{cite web\|url=http://thefxview.com/2013/06/07/ctfc-files-civil-suit-against-banc-de-binary/\|title = CTFC files civil suit against Banc De Binary\| publisher = The Fx View \| accessdate = 19 June 2013}}</ref> Both the CTFC and SEC working in conjunction with one another filed civil suits against the company, seeking disgorgement, financial penalties and other preliminary and permanent injunctions against the company.<ref name="SEC">{{cite web\|url=http://www.sec.gov/news/press/2013/2013-103.htm\|title = SEC Warns Investors About Binary Options and Charges Cyprus-Based Company with Selling Them Illegally in U.S. \| publisher=Securities Exchange Comission \| accessdate = 19 June 2013}}</ref><ref name="CTFC">{{cite web\|url=http://www.cftc.gov/PressRoom/PressReleases/pr6602-13\|title = CFTC Charges "Prediction Market" Proprietor Banc De Binary with Violating the CFTC’s Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant \| accessdate = 19 June 2013}}</ref> In civil suits filed in Nevada, the SEC and CTFC allege that the company was offering off-exchange traded options to US customers and unlawfully solicited US customers to buy and sell options. The CTFC and SEC's suit also alleges that it did not limit its offerings to eligible contract participants, contrary to US regulations;<ref name="SEC">{{cite web\|url=http://www.sec.gov/litigation/complaints/2013/comp-pr2013-103.pdf\|title = SEC Full Complaint \| accessdate = 19 June 2013}}</ref><ref>{{cite web\|url=http://www.cftc.gov/PressRoom/PressReleases/pr6602-13% \|title = CFTC Charges "Prediction Market" Proprietor Banc de Binary with Violating the CFTC’s Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant \| accessdate = 19 June 2013}}</ref> a fully regulated broker would complete credit checks on customers to ensure that those with low finances did not trade with them. Amongst the allegations made by the SEC is that Banc de Binary induced people with limited funds, including one unemployed person with less than $1000,<ref>{{cite web\|url=http://www.sec.gov/litigation/litreleases/2013/lr22718.htm \|title=Banc de Binary Ltd. (Release No. LR-22718; June 7, 2013) \|publisher=Sec.gov \|date= \|accessdate=2013-10-18}}</ref> to open accounts. In response to the US charges the company put out a statement that made no mention of its legal problems, but instead incorrectly implied that they were in negotiations and that they had voluntarily left the US market, when in fact the SEC had taken an injunction out to stop them:<ref name="thisismoney.co.uk"/><ref>. Sec.gov. Retrieved on 2013-10-16.</ref>
	*

	*
			Banc de Binary have retained the services of Snell and Wilmer in Reno in relation to US charges. This followed an earlier hearing where in the absence of any representation from Banc de Binary, charges were filed via email and by post<ref name="justia"/>
	*

			In a message posted on its Web site,<ref>{{cite web\|url=http://l.bbinary.com/Notice/ \|title=Binary Options Trading Online with Banc De Binary \|date= \|accessdate=2013-08-17\|archiveurl=http://archive.is/B9p6X\|archivedate=2013-08-17}}</ref> the company stated that {{quote\|1= Banc De Binary is voluntarily discontinuing its operations in the United States. The United States Commodity Futures Trading Commission and Securities and Exchange Commission have asserted that Banc De Binary is not permitted to offer its binary option products to U.S. residents without registering with those agencies. We are currently in discussions with the CFTC and SEC about these issues, but in the interim, we have discontinued all business with U.S. residents.}}

			==Investor advisories==
			As of October 2013, the company was rated "F" by the United States' ] because 31 complaints had been made against it, including 9 which were unanswered. The BBB report also offered the opinion that "he site essentially allows investors to gamble on the future price of something at a point in time."<ref>{{cite web
			\|url= http://www.bbb.org/new-york-city/Business-Reviews/investment-management/banc-de-binary-in-new-york-ny-118878
			\|title= BBB Business Review
			\|archiveurl= http://web.archive.org/web/20131017082101/http://www.bbb.org/new-york-city/Business-Reviews/investment-management/banc-de-binary-in-new-york-ny-118878
			\|archivedate= 2013-10-17
			\|quote= Factors that lowered the rating for Banc De Binary include:

			31 complaints filed against business
			Failure to respond to 9 complaints filed against business}}</ref>

			It appears on the ]'s "List of Unregistered Soliciting Entities That Have Been the Subject of Investor Complaints".<ref>{{cite web\|title=Public Alert: Unregistered Soliciting Entities\|url=http://www.sec.gov/investor/oiepauselist.htm\|publisher=Securities and Exchange Commission\|accessdate=15 October 2012\|archiveurl=http://web.archive.org/web/20130223030930/http://www.sec.gov/investor/oiepauselist.htm\|archivedate=2013-02-23}}</ref>

			In Canada, it is listed on the ]'s ''Investors Warning List'' of "companies that appear to be engaging in activities that may pose a risk to investors".<ref>{{cite web\|title=Investors Warning List\|url=http://www.osc.gov.on.ca/en/Investors_warning-list_index.htm#v\|publisher=Ontario Securities Commission\|accessdate=13 January 2013
			\|archiveurl=http://web.archive.org/web/20131017000849/http://www.osc.gov.on.ca/en/Investors_warning-list_index.htm
			\|archivedate=2013-10-17}}</ref>

			After receiving "at least one complaint from a Québec investor who traded through Banc de Binary's platform and was unable to recover his investment", the ] (AMF) warned investors about the company. It noted that a bonus of 50% of the opening deposit is available, but customers who accept the bonus are not allowed to make withdrawals until they have made trades equal to 20 times their initial deposit. The AMF also pointed out that, due to the "all or nothing" nature of binary options, an investor who wrongly predicts market movement will lose his entire investment. Banc De Binary is not registered with the AMF. The AMF also, like the CFTC, included a more general warning about the risk of fraud in binary options trading in the same press release.<ref>{{cite web\|url=http://www.lautorite.qc.ca/en/press-releases-2013-autre.html_2013_caution-banc-de-binary.html \|title=Binary options – AMF Cautions About Solicitations by Banc de Binary \|publisher=Lautorite.qc.ca \|date= \|accessdate=2013-08-17}}</ref>

			==External links==
			*
			*
			*
			*

	==Images==		==Images==

	{{Multiple image		{{Multiple image
	\|align=left		\|align=left
Line 239:		Line 271:
	}}		}}
	{{-}}		{{-}}

	== See also ==

	*]
	*]
	*]
	*]
	*]
	*]
	*]
	*]

	==References==		==References==
Line 257:		Line 278:
	]		]
	]		]
			]

Revision as of 10:06, 8 April 2014

Banc De Binary

Company type	Private
Industry	binary options
Founded	2009
Key people	Oren Shabat Cohen, also known as Oren Shabat and Oren Laurent, CEO and Director; Soteris Flourentzou, Director; Pieris Hadjipieris, Director; Uri Katz, Director; Yehezkel Shabat, Director; Abraham 'Abe' Cofnas, Head Analyst; Sarah Fenwick, Director of Communications; Roy Ogen, General Manager of the Cyprus Headquarters
Website	www.bancdebinary.com/

Banc De Binary, formerly known as BO Systems Limited and also known as BDB Services Limited and ET Binary Options Ltd., is an Israeli-Cypriot based enterprise specializing in binary options (also known as fixed return options) on assets including commodities, stocks, indices, and foreign exchange. The company operates an online trading website through which customers can buy or sell binary ("call" or "put") options, predicting whether the price of a certain commodity will go up or down in a specific time period. Banc de Binary customers do not execute their trades via a regulated exchange, but are 'betting' against the firm itself, and the firm only profits if the client loses. In addition to being blacklisted by the Italian regulator CONSOB, the company has been charged with several offences by the CTFC and SEC, and trading with US customers has been frozen following an injunction on 1 August 2013. Charges filed on 7 August in the US stated that Banc de Binary and Oren Shabat Cohen "may be criminally liable under the federal RICO statute". Oren Shabat Cohen and Banc de Binary have refused to appear in court in the US for depositions. Within the European Union, the company is regulated by the Cyprus Securities and Exchange Commission (CySEC); elsewhere it does business through BDB Trading, a separately incorporated company.

The Wall Street Journal described it as "a website that allows people to bet on the price of gold, oil or stocks"; the Daily Mail called it a "betting firm".

History

In an interview the company's founder stated that the firm was founded on the 15th Jan 2009, and that before, he had worked at "NAF Hedge Funds" and "Infinity Private Investment Funds", which he described as hedge funds in New York. The company also claims to have been founded in Seychelles in 2008, and that this is their current trading address. According to their Facebook Page, E.T. Binary Options, the alternative name for Banc de Binary, operates from the Diamond District in Ramat Gan, Israel and it is also publicly listed as having another office in Petah Tikva, Israel.

The CTFC asserted in their complaint against Banc de Binary that its CEO and founder Oren Laurent is an Israeli resident called Oren Shabat Cohen, with later court documents placing him in Tel Aviv. On the Banc de Binary website and others the CEO is called Oren Laurent; however the CTFC called him Oren Shabat Cohen, saying he is also known as Oren Laurent.

In an interview, the company's founder claimed that by June 2011 the company had around 20,000 client accounts, and in an open letter published by August 2012, he claimed that number was then 200,000. Banc de Binary have stated that it "is a small company, with approximately 60 employees".

An article in the Independent on Sunday newspaper described it as a "leading City trading firm", although it does not have an office in the City of London, and the address the company gives is a virtual office space with no physical presence .

Regulation

On 7 January 2013, Banc De Binary was licensed as an investment firm by the Cyprus Securities and Exchange Commission (CySEC).

Investment firms regulated by CySEC must demonstrate to CySEC that their activities comply with the laws of any non-EU countries where they do business. According to the company, its operations "outside of the European Union" are conducted by BDB Services Limited (formerly known as BO Systems Limited), which is incorporated in the Seychelles.

The Financial Services Register maintained by the UK's Financial Conduct Authority states that from 25 February 2013 the company "is authorised or registered by ... ... and may be subject to limited regulation by the Financial Conduct Authority". The company has similar licences in Germany, Italy, where it is now blacklisted by CONSOB, France, and Spain. In accordance with the European Markets in Financial Instruments Directive (MiFID), the company has "passported" into almost all member states of the EEA; MiFID allows companies to provide financial services primarily regulated by their home state rather than the state where the customer resides, but clients based in other countries would receive nothing if the company collapsed.

A 2013 investigation by the British Daily Mail newspaper journalist Tony Hetherington alleged that one client had $25,000 stolen from his bank account after signing up with them.

Products and services

The company allows people to place predictions on changes in the price of various assets by using a pricing platform provided by another Israeli company, Spotoption, and customised by Banc de Binary. Customers do not own the asset but instead predict whether its price will rise or fall. Spotoption also provide similar services for around 170 other binary options brokers. Banc de Binary's role is to create accounts for customers as a reseller of Spotoption's services. The company offers several kinds of options; customers can make predictions of the price of over 200 global assets including commodities, stocks, indices, and FOREX using several variations of the trading platform including classic binary options, long term options, sixty seconds, one touch (boundary options), and pairs trading.

Internet presence

As of March 2014, the following domain names (and possibly others) were registered in the company's name:

bbinary.com
bancdebinary.com
bancdebinary.net
bancdebinary.org
easytradeonline.us
binarybank.asia
bdbaffiliates.us
binarybank.us
binary-bank.us
thebinaryoption.us
bbinary.asia
bbinary.eu
binary-bank.eu
binarybank.eu
binaryoptions.fm
bdb-partners.com

The domain bancdebinary.eu was registered to "Cronon AG Professional IT-Services".

Awards

2013, Best Binary Options Broker in the Middle East 2013, JFEX
2012, Best Binary Options Customer Service, ForexTraders
2011, World Finance 100, World Finance Magazine
2011, Best Customer Service, FX Empire
2011, Broker of the Year, Binary Options Daily
2011, Platform of the Year, Binary Options Daily

US regulatory issues

Banc de Binary claimed to have an office in New York City at Trump Towers, but this was in fact a virtual office space with no significant physical presence. Trading and offering financial services to US consumers without gaining a license first from US regulators is illegal, as it would mean the client would have no protection. The company also claims on its site at its UK Companies House report to have an office at 1 King Street, EC2, in the City of London, but this, like its New York City address, is a virtual office with no physical presence. Banc de Binary's UK Companies House report says that they are based in Cyprus.

On 6 June 2013, Banc De Binary was charged by both the Commodity Futures Trading Commission and the Securities and Exchange Commission for alleged violations of US financial regulations. In the same press release the CFTC warned more generally of "fraudulent schemes involving binary options and their trading platforms". On 30 July 2013 the SEC obtained a preliminary injunction from U.S. District Court for the District of Nevada to prevent and freeze any further trading with US customers. Binary trading in the US is legal, but only if done through properly registered and regulated exchanges such as NADEX. Both the CTFC and SEC working in conjunction with one another filed civil suits against the company, seeking disgorgement, financial penalties and other preliminary and permanent injunctions against the company. In civil suits filed in Nevada, the SEC and CTFC allege that the company was offering off-exchange traded options to US customers and unlawfully solicited US customers to buy and sell options. The CTFC and SEC's suit also alleges that it did not limit its offerings to eligible contract participants, contrary to US regulations; a fully regulated broker would complete credit checks on customers to ensure that those with low finances did not trade with them. Amongst the allegations made by the SEC is that Banc de Binary induced people with limited funds, including one unemployed person with less than $1000, to open accounts. In response to the US charges the company put out a statement that made no mention of its legal problems, but instead incorrectly implied that they were in negotiations and that they had voluntarily left the US market, when in fact the SEC had taken an injunction out to stop them:

Banc de Binary have retained the services of Snell and Wilmer in Reno in relation to US charges. This followed an earlier hearing where in the absence of any representation from Banc de Binary, charges were filed via email and by post

In a message posted on its Web site, the company stated that

Banc De Binary is voluntarily discontinuing its operations in the United States. The United States Commodity Futures Trading Commission and Securities and Exchange Commission have asserted that Banc De Binary is not permitted to offer its binary option products to U.S. residents without registering with those agencies. We are currently in discussions with the CFTC and SEC about these issues, but in the interim, we have discontinued all business with U.S. residents.

Investor advisories

As of October 2013, the company was rated "F" by the United States' Better Business Bureau because 31 complaints had been made against it, including 9 which were unanswered. The BBB report also offered the opinion that "he site essentially allows investors to gamble on the future price of something at a point in time."

It appears on the US Securities and Exchange Commission's "List of Unregistered Soliciting Entities That Have Been the Subject of Investor Complaints".

In Canada, it is listed on the Ontario Securities Commission's Investors Warning List of "companies that appear to be engaging in activities that may pose a risk to investors".

After receiving "at least one complaint from a Québec investor who traded through Banc de Binary's platform and was unable to recover his investment", the Autorité des marchés financiers (AMF) warned investors about the company. It noted that a bonus of 50% of the opening deposit is available, but customers who accept the bonus are not allowed to make withdrawals until they have made trades equal to 20 times their initial deposit. The AMF also pointed out that, due to the "all or nothing" nature of binary options, an investor who wrongly predicts market movement will lose his entire investment. Banc De Binary is not registered with the AMF. The AMF also, like the CFTC, included a more general warning about the risk of fraud in binary options trading in the same press release.

External links

Images

home page, August 2013home page, August 2013

References

"BancDebinaRy.com Whois Record". Archived from the original on 2013-10-29. Registrant Name: Oren Shabat Cohen
"Oren Shabat profile | free company director check". Companydirectorcheck.com. Archived from the original on 2013-11-15. Retrieved 2013-11-11.
"Banc De Binary Iphone Application/Blog | Job on Guru". Guru.com. 2010-07-15. Archived from the original on 2013-11-15. Retrieved 2013-11-13.
^ "U.S. Commodity Futures Trading Commission v. Banc de Binary Ltd. (a/k/a E.T. Binary Options Ltd.), Complaint for Injunctive and Other Equitable Relief and for Civil Monetary Penalties Under the Commodity Exchange Act and Commission Regulations" (PDF). Banc de Binary's chief executive officer, Oren Shabat Cohen (a/k/a Oren Laurent), resides in Israel and is the registrant for the website www.bbinary.com. Cite error: The named reference "cftc" was defined multiple times with different content (see the help page).
"Soteris Flourentzou profile | free company director check". Companydirectorcheck.com. Retrieved 2013-11-11.
"Pieris Hadjipieris profile | free company director check". Companydirectorcheck.com. Retrieved 2013-11-11.
"Uri Katz profile | free company director check". Companydirectorcheck.com. Retrieved 2013-11-11.
"Yehezkel Shabat profile | free company ≠director check". Companydirectorcheck.com. Retrieved 2013-11-11.
"The next generation of financier". European CEO. 2013-01-27. Retrieved 2013-11-11.
Cofnas, Abe. "Abe Cofnas". Futures (magazine). Retrieved 2013-11-11.
"Banc De Binary tops 200,000 new client accounts". 2013-10-08. The communications team for Cyprus is led by Sarah Fenwick who is the company's Director of Communications.
http://www.goldnews.com.cy/en/financial-services/banc-de-binary--changing-the-face-of-online-trading
^ "CFTC Charges "Prediction Market" Proprietor Banc de Binary with Violating the CFTC's Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant". Archived from the original on 2013-08-19. Retrieved 2013-10-16. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
http://thefxview.com/2013/08/16/binary-options-vs-forex-trading/
http://www.daytradingcoach.com/binary-options.html
^ http://www.cedarfinancescam.com/banc-de-binary-scam/
"Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013)". Sec.gov. Retrieved 2013-11-27.
^ http://docs.justia.com/cases/federal/district-courts/nevada/nvdce/2:2013cv00993/94851/61/0.pdf
"Regulators Sue Prediction Site, Allege Illegal Options". Wall Street Journal. Archived from the original on 2013-11-15. Retrieved 11 June 2013.
Tony Hetherington. "US watchdog takes 'bank' Banc de Binary to court...but Britain lets it in". Daily Mail. Archived from the original on 2013-11-15. Retrieved 2013-11-13.
"Banc De Binary CEO Oren Laurent Opens Up on Binary Options - with Banc De Binary". Investing.com. Retrieved 2013-11-11.
"Oren Laurent, Financial Services". Archived from the original on 2013-09-16. Retrieved 2013-10-24. He obtained employment in various retail Wall Street Firms and then worked in NAF Hedge Funds. He later transferred to Infinity Private Investment Funds.
"Banc De Binary". Mybinaryoption.com. 2013-09-04. Retrieved 2013-11-27.
^ "Terms of Use". Archived from the original on 2013-11-20. BO Systems Limited (Effective from January 7, 2013 until March 5, 2013) and/or BDB Services Limited (Effective from March 5, 2013) (hereafter the Company) The trading address of BDB Services Limited is situated at Suite 106, Premier Building, Victoria, Mahe, Seychelles. Outside of the European Union, this website is operated by BDB Services Limited (Incorporated in Seychelles) {{cite web}}: line feed character in |quote= at position 161 (help) Cite error: The named reference "tou" was defined multiple times with different content (see the help page).
"E.T. Binary Options LTD". Archived from the original on 2013-10-23. Retrieved 2013-10-23. משרדנו ממוקמים ברמת גן במתחם הבורסה
"E.T. BINARY OPTIONS LTD LTD - D&B DunsGuide Global - Israel Business". Israel-business.dundb.co.il. Retrieved 2013-11-27.
http://www.cftc.gov/ucm/groups/public/@lrenforcementactions/documents/legalpleading/enfbanccomplaint060513.pdf
"Banc De Binary CEO Oren Laurent - Interview". Bancdebinary.com. Retrieved 2013-11-27.
"Oren Laurent". Archived from the original on 2012-07-26.
"Banc De Binary CEO Oren Laurent Opens Up on Binary Options - with Banc De Binary". Investing.com. Retrieved 2013-11-27.
Wright, Susan (27 May 2013). "Banc De Binary CEO Oren Laurent Opens Up on Binary Options". Investment Underground. Archived from the original on 2013-08-08. Retrieved Aug 11, 2013. Our projections were for 10,000 client accounts by the end of 2011. We'd doubled that number by June.
"Banc De Binary's CEO Oren Laurent Expresses Sincere Thanks". BinaryOptionsDaily.com. Retrieved Aug 11, 2013.
"Blue-chip dividends tipped to soar". The Independent. 2013-01-20. Retrieved 2013-11-11.
"Buy a 1 King Street, EC2V 8AU". Bookings.executiveoffices.co.uk. Retrieved 2013-11-27.
"Cyprus Securities and Exchange Commission". Cysec.gov.cy. Retrieved 2013-08-17.
"Banc De Binary is first Binary Options Broker in EU". Financial Mirror. Retrieved Aug 11, 2013.
"Get Out! CySEC Bans FX Firms From Accepting Non-EU Clientswork=Forex Magnates". Archived from the original on 2013-08-06. Retrieved 2013-10-16. brokers which operate under the CySEC license will no longer be able to solicit business outside of the European Union, unless a potential client who resides in a non-EU member state can provide written authorization from the domestic financial markets regulator in the nation which that person is resident
"Freedom to provide investment and ancillary services and or perform investment activities in a third country" (PDF). Circular CI144-2013-22. Cyprus Securities and Exchange Commission. 2013-07-26. Archived from the original (PDF) on 2013-08-14. Retrieved 2013-11-11. The Commission allows, pursuant to section 79(4) of the Law, the provision of investment and ancillary services and/or the performance of investment services within the territory of a third country provided that CIFs, before commencing any activity, will take all necessary measures to ensure that they will comply with the relevant legal provisions of the third country.
"Financial Services Register 2013". Bank of England Financial Services Register. Jun 2013. Retrieved 8 July 2013.
BaFin. "BaFin – Unternehmensdatenbank BaFin" (in Template:De icon). Portal.mvp.bafin.de. Retrieved 2013-08-17.{{cite web}}: CS1 maint: unrecognized language (link)
"Consob". Consob.it. Retrieved 2013-08-17.
"Fiche agent financier – REGAFI – Registre des agents financiers". Regafi.fr. Retrieved 2013-08-17.
"CNMV – Empresas de servicios de inversión extranjeras en libre prestación". Cnmv.es. 2013-01-24. Retrieved 2013-08-17.
"Cypriot Investment Firm offering cross-border services to Member States". CySEC. Retrieved Aug 11, 2013.
^ Tony Hetherington. "US watchdog takes 'bank' Banc de Binary to court...but Britain lets it in". Daily Mail. Retrieved 2013-10-16.
http://www.spotoption.com/binaryoptions/what-are-binary-options/
http://www.spotoption.com/brands/
"Binary Option". investopedia.com. Retrieved Aug 11, 2013.
"60 Second Binary Option Trading Strategy". Nancy Eleutheriou. Retrieved Aug 11, 2013.
"One-Touch Option". investopedia.com. Retrieved Aug 11, 2013.
"bBinary.com Whois Record". Archived from the original on 2013-10-29. Retrieved 2013-10-29. Registrant Name: Jak Giveon Registrant Organization: Banc De Binary {{cite web}}: line feed character in |quote= at position 28 (help)
"WHOIS Results for bancdebinary.com". Archived from the original on 2013-11-20. Retrieved 2013-11-20. Tech Name: Oren Shabat Cohen Tech Organization: Banc De Binary Ltd {{cite web}}: line feed character in |quote= at position 29 (help)
"Whois bancdebinary.net". Archived from the original on 2013-12-04. Retrieved 2013-12-04. Admin Email: email@bbinary.com
"BancDebinaRy.org Whois Record". Archived from the original on 2013-12-04. Retrieved 2013-12-04. Registrant Organization:Banc De Binary
"EasyTradeOnline.us Whois Record". Archived from the original on 2013-10-24. Retrieved 2013-10-24. Registrant Organization: Banc De Binary
"BinaryBank.asia Whois Record". Archived from the original on 2013-10-24. Retrieved 2013-10-24. Registrant Organization: Banc De Binary
"BdbAffiliates.us Whois Record". Archived from the original on 2013-10-24. Retrieved 2013-10-24. Registrant Organization: Banc De Binary
"BinaryBank.us Whois Record". Archived from the original on 2013-10-29. Retrieved 2013-10-29. Registrant Organization: Banc De Binary
"Binary-Bank.us Whois Record". Archived from the original on 2013-10-29. Retrieved 2013-10-29. Registrant Organization: Banc De Binary
"TheBinaryOption.us Whois Record". Archived from the original on 2013-10-29. Retrieved 2013-10-29. Registrant Organization: Banc De Binary
"bBinary.asia Whois Record". Archived from the original on 2013-10-29. Retrieved 2013-10-29. Registrant Organization: Banc De Binary
"WHOIS search". Archived from the original on 2013-12-04. Retrieved 2013-12-04. Organisation Banc De Binary {{cite web}}: horizontal tab character in |quote= at position 14 (help)
"WHOIS search". Archived from the original on 2013-12-04. Retrieved 2013-12-04. Organisation Banc De Binary {{cite web}}: horizontal tab character in |quote= at position 14 (help)
"WHOIS search". Archived from the original on 2013-12-04. Retrieved 2013-12-04. Organisation Banc De Binary {{cite web}}: horizontal tab character in |quote= at position 14 (help)
"BinaryOptions.fm Whois Record". Archived from the original on 2013-12-04. Retrieved 2013-12-04. Organisation: Banc De Binary
http://bdb-partners.com/
"Bdb-Partners.com Whois Record". Retrieved 2014-03-27. Registrant Name: Yeheshkiel Shabat Registrant Organization: ET Options {{cite web}}: line feed character in |quote= at position 35 (help)
"WHOIS search". Archived from the original on 2013-12-04. Retrieved 2013-12-04. Organisation Cronon AG Professional IT-Services {{cite web}}: horizontal tab character in |quote= at position 14 (help)
"JEFX AWARD 2013 Winners". Jordan Forex Expo and Award 13. Retrieved Aug 11, 2013.
"FOREX industry celebrates the JFEX 2013 awards winners". ICN.com. Retrieved Aug 11, 2013.
"Forex Traders". ForexTraders.com. Retrieved Mar 1, 2013.
"Banc De Binary World Finance 100 Profile". World Finance 100. Retrieved Aug 11, 2013.
"FXEmpire". FXEmpire. Retrieved Jan 1, 2013.
^ "Binary Options Daily". BinaryOptionsDaily.com. Retrieved Jan 1, 2013.
"SECURITIES AND EXCHANGE COMMISSION vs. BANC DE BINARY LTD, complaint" (PDF). Banc de Binary maintained a virtual office on Wall Street
"Companies House WebCheck". Wck2.companieshouse.gov.uk. Retrieved 2013-10-18.
"Buy a 1 King Street, EC2V 8AU". Bookings.executiveoffices.co.uk. Retrieved 2013-10-18.
"Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013)". Sec.gov. Retrieved 2013-10-18.
"Binary Options Legal US". Nadex.com. Retrieved 2013-10-18.
"Banc De Binary: Gets Charged by the CTFC". ForexMagnates. Retrieved 19 June 2013.
"CTFC files civil suit against Banc De Binary". The Fx View. Retrieved 19 June 2013.
^ "SEC Warns Investors About Binary Options and Charges Cyprus-Based Company with Selling Them Illegally in U.S." Securities Exchange Comission. Retrieved 19 June 2013. Cite error: The named reference "SEC" was defined multiple times with different content (see the help page).
"CFTC Charges "Prediction Market" Proprietor Banc De Binary with Violating the CFTC's Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant". Retrieved 19 June 2013.
"CFTC Charges "Prediction Market" Proprietor Banc de Binary with Violating the CFTC's Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant". Retrieved 19 June 2013.
"Banc de Binary Ltd. (Release No. LR-22718; June 7, 2013)". Sec.gov. Retrieved 2013-10-18.
Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013). Sec.gov. Retrieved on 2013-10-16.
"Binary Options Trading Online with Banc De Binary". Archived from the original on 2013-08-17. Retrieved 2013-08-17.
"BBB Business Review". Archived from the original on 2013-10-17. Factors that lowered the rating for Banc De Binary include: 31 complaints filed against business Failure to respond to 9 complaints filed against business {{cite web}}: line feed character in |quote= at position 60 (help)
"Public Alert: Unregistered Soliciting Entities". Securities and Exchange Commission. Archived from the original on 2013-02-23. Retrieved 15 October 2012.
"Investors Warning List". Ontario Securities Commission. Archived from the original on 2013-10-17. Retrieved 13 January 2013.
"Binary options – AMF Cautions About Solicitations by Banc de Binary". Lautorite.qc.ca. Retrieved 2013-08-17.

Categories: