Banc de Binary Affiliates Sued By CFTC in Off-Exchange Controversy

The Commodity Futures Trading Commission May 7 amended its complaintagainst Banc de Binary Ltd. for allegedly violating the agency’s ban on off-exchange options trading, adding three affiliated Banc de Binary affiliates as defendants (CFTC v. Banc de Binary Ltd.).

Counsel to the new defendants—E.T. Binary Options Ltd., BO Systems Ltd. and BDB Services Ltd.—could not be identified. The CFTC said the three entities also violated the ban on off-exchange options trading by offering commodity option contracts to U.S. customers for trading, among other misconduct.

Moreover, the three entities, along with Banc de Binary, operated as unregistered futures ...