Furthermore, binary options community and binary options’ brokers are increasingly looking for grounds to make binary trading as popular and easy to follow from legal prospective, as classical options, futures and other derivative contracts are tag along.
Looks, the binary option industry makes attempts to leave its childhood, which similar to any maturing innovation meets some difficulties. It may need a time and energy to struggle them too.
Few days ago, Michael Greenberg, a contributor to forexmagnates.com reported that few binary options providers are attempting to get regulated in Europe and that they met difficulties as there is no a proper regulatory framework for that.
Although the EU legislation does not recognizes binary options as illegal financial instruments, still there is no a specific laws or ordinances, which may create perquisites for the development of binary options industry.
Above and beyond, the Cyprus Securities and Exchange Commission (CySEC) being one of most popular forex regulators has officially published statement on its website, that “binary options do not fall within the definition of financial instruments under the IFLaw 144(I)/2007 and are therefore not subject to CySEC regulation.”.
What are practices and binary regulations beyond?
Thanks to the proposed rule change by the Options Clearing Corporation in the United States, the Securities and Exchange Commission approves listing of digital options four years ago. Since 2008, the American Stock Exchange (Amex) launches the official market-traded European cash-or-nothing binary options. One month later, the Chicago Board Options Exchange (CBOE) follows the started process of standardization of binary options, allowing them to be exchange-traded with continuous quotations.
Currently, on the American capital market, in addition to the aforementioned exchange-traded binary options, binary contracts are traded on the Over-the-counter (OTC) market too.
Referring to the above CySEC’s statement, in the agenda of brokers, traders and authorities stay few topics, possibly not only for discussion.
Although binary options have been recognized as a financial instrument, still remains the question under the authority of which institution should be binary options’ intermediaries?
Are regulatory authorities in the United States, Europe and other countries with good capital markets, regulation and practices ready to meet current demands of binary options community and binary options providers?