Securities Law News

Firms Illegally Offered Binary Options in U.S., CFTC Says

March 16, 2016, 4:00 AM

Two Israel-based firms unlawfully accepted more than $1 million from U.S. customers to trade off-exchange binary options contracts, the Commodity Futures Trading Commission (CFTC) has alleged (CFTC v. Vault Options Ltd., N.D. Ill., 16-cv-01881, complaint unsealed).

Binary options are two-way options that allow customers to make trades based on whether they think the price of a certain commodity will rise or fall. To be legal in the U.S., they must be traded on a registered board of trade. Because the options offered by defendants Vault Options Ltd. and Global Trader 365 weren’t exchange-traded, the firms acted as...

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