Banc de Binary charged by CFTC
At times, even the best of online binary option brokers can come under scrutiny from regulatory agencies. It is inevitable sometimes when an investor loses money and they are looking somewhere other than themselves to place the blame. Banc de Binary has come under fire from the CFTC on more than one occasion, but despite this they remain committed to satisfying their many users.
Why did the CFTC first go after Banc de Binary? It is because of some of the complaints that they received from unhappy traders. It must first be noted that no online binary option broker can possibly satisfy every one of their many traders; no business in the world can claim that when they have a large number of customers.
It just so happens that at the time that the CFTC started to investigate the complaints about Banc de Binary, Banc de Binary was in the process of talking to the CFTC in order to maintain approval to operate in the USA. Needless to say, after hearing the CFTC had raised some questions about things, that move was put on hold.
The whole incident came about because the CFTC thought that Banc de Binary had violated a ban that had been in place on off exchange option trading. They also claimed that Banc De Binary had started to offer commodity type option trades to customers in the USA. This led to the investigation by CFTC into looking for proof that the orders taken from US customers had been confirmed and placed.
The CFTC took a hard look at what Banc de Binary traders were actually trading their many put and call options on. Apparently there was a mix up because US traders are not allowed to place binary options trades on commodities such as wheat, oil, corn and several other stock based indices. This apparently took place over a 22 month period from May 2011 until March 2013. They took a particularly hard stance on the alleged binary options trading.
David Meister of the CTFC’s division of enforcement stated they are there to protect the overall interests of American traders and that is why the bans were put into effect in the first place. He also asserted that he felt the CFTC was being fair in their assessment of Banc de Binary.
Banc de Binary countered by saying that they work extremely hard to stay on top of the numerous different regulations that are out there and they disputed many of the CFTC’s allegations as being false.
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References and Further Reading:
1. Centralized electronic currency trading exchange (D Myr – 2004)
2. Multi-Agent Forex Trading System (RP Barbosa, O Belo – 2010)
3. The cost of technical trading rules in the Forex market: A utility-based evaluation (H Dewachter, M Lyrio – 2006)
4. Optimal artificial neural network topology for foreign exchange forecasting (A Emam – 2008)
5. Application of neural network for forecasting of exchange rates and forex trading (N Maknickienė, A Maknickas – 2012)
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