Binary options, once a major part of the financial trading industry, continues to decline. Finance Magnates has learnt that SpotOption, one of the leading providers of binary options platforms, is to close all binary options-related activities in the coming months in Israel, as part of a dramatic series of changes undertaken in an attempt to keep pace with the evolving regulatory framework.
Concurrently, the company will continue shifting its focus to other trading mechanisms.
During the last few days, SpotOption clients have received announcements telling them to either terminate their account with the proprietary platform or to shift the subscription to alternative trading services, mostly CFDs. The platform will continue to function until late January, offering clients only short term positions, then it will shut down permanently. “Those who choose to stay in the binary options sphere can go to one of the many other platform providers outside of Israel,” noted Pini Peter, founder of SpotOption, exclusively to Finance Magnates.
Repercussions of ISA’s hawkish approach
This recent move is another link in a chain of actions taken by the financial services provider to align with the toughening regulations imposed by the Israeli Securities Authority (ISA). Israel is considered to be one of the most hawkish countries with regard to regulating binary options trading having banned the industry altogether. “We are an Israeli company and so we will remain. We want to follow ISAs regulations fully, and hence we’re taking this step,” Peter commented.
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As Finance Magnates reported earlier, SpotOption cut most of its Israeli staff in the first quarter of 2017 and shifted most of its activities abroad, mostly to Hong Kong, London and Singapore. Now, Peter reveals that they had to let go of most of the company’s staff: “From the beginning of the year, we had to fire some 60% of our employees,” he said. “However, our current team is comprised of the industry’s brightest and most talented people. I’m sure that we have a winning team for any endeavor we will choose to pursue”.
Cryptocurrencies and CFDs are the future
In tune with that positive attitude, the trading technology provider is already looking to strengthen its grip on some trading industries and to penetrate other fields. In January, the firm is set to launch its new CFDs trading platform SpotX, designed to comply with MIFID II regulations.
Peter stated that the new platform will be much more transparent and friendly and promised that it will take the CFDs industry to a whole new level. “Our goal is to reach at least a 10% market share in a year.”
Last May, SpotOption launched Spot5, its latest platform, focusing on automated management and CFDs. In November it launched OTC Book, the group’s new subsidiary for CFDs, FX, and cryptocurrency liquidity.
Beyond its presence in the CFD arena, SoftOption, that introduced blockchain-based trading offers and added 30 cryptocurrencies to its trading portfolio this year, also plans to storm the booming crypto industry. “We are closely following what the crypto world has to offer. You will see some surprises coming from our side very soon,” Peter promised.