Securities Law News

Court Grants SEC Preliminary Bar;
Rules ‘Binary Options’ Are Securities

Aug. 1, 2013, 4:00 AM

The U.S. District Court for the District of Nevada July 30 granted the Securities and Exchange Commission’s motion for a preliminary injunction in an action over the sale of unregistered “binary options” (SEC v. Banc de Binary Ltd.).

Judge Robert Jones said that “Congress has enabled the SEC under … [securities law] to regulate wagering contracts turning upon the value of securities. That is what binary options are, and the SEC may therefore regulate them.”

Online Trading Platform.

The court said that defendant, Banc de Binary Ltd., is a Cypriot company with a license to operate in Cyprus...

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