According to an announcement made by one of the thirteen Canadian provincial regulators, the Ontario Securities Commission (OSC), the company operating the binary options brokerage TradeRush, is not allowed to conduct business in Canada.
Marblestone Partners Ltd. which is allegedly a U.K. registered entity behind TradeRush also appears as the business counterparty on the website of binary options brokerage Boss Capital.
The OSC does not specify whether TradeRush is soliciting clients from the region, but warns the public that the binary options broker is not registered in Ontario, Canada and hence cannot provide its services there legally.
Previously, the British Colombia financial regulator has already issued a similar warning against TradeRush.
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The website of TradeRush provides support numbers for Canada, while the other entity behind Marblestone Partners Ltd, Boss Capital, sports not one but two support numbers for the U.S. The strict regulatory framework under which binary options can be provided to clients in the States has been set up by the Commodities and Futures Trading Commission.
TradeRush and Boss Capital do not claim to be regulated under any jurisdiction
According to the current setup, binary options in the U.S. may only be provided legally if they are traded on an exchange. Currently, there are three legitimate exchanges in the U.S. – Cantor, Nadex and NYSE with its ByRDs (Binary Return Derivatives) contracts.
Both TradeRush and Boss Capital do not claim to be regulated under any jurisdiction, but the address of the company behind both entities leads to London, U.K.
A recent debate between the U.K. Treasury and gambling and financial regulators in the country is most likely to lead to binary options becoming regulated by the Financial Conduct Authority (FCA).