Novox Capital and its technology provider TRADOLOGIC received the green light from the Cyprus Securities and Exchange Commission (CySEC) to launch a new product. The peer-to-peer trading venue for binary options contracts will become the first of its kind to get licensed in Europe.
In contrast to market making binary options providers, the new trading venue’s founders state in an official announcement that the new venue will sport a trader to trader execution model.
Nadex and Cantor Exchange have been operating in a similar way in the US under the supervision of local regulators. In peer-to-peer execution, traders with opposing views on the market will be matched so that their trades are placed on their platforms. It is further stressed by Novox Capital Ltd’s management that in no way the approval by CySEC of the P2P execution venue/platform allows it to operate an exchange or an MTF.
The developers of the product believe that the P2P model is going to improve the winning traders’ win ratios and reduce the possible conflict of interest between brokers and their clients.
TRADOLOGIC’s platform supports several asset classes including currencies, stocks, indices, commodities and futures.
The CEO of TRADOLOGIC, Michael Golod, elaborated in an official announcement: “I have no doubt that this is the future of trading digital options and I am delighted that we are getting on the same page with EU regulators. I’m positive that we will witness a massive growth in trade volumes over the next few months and we’ll see our hard work pay off.”