Binary Options Broker Optionclub Gets to Passport Dutch License Across EU
- The administrative appeals court reinstated the company’s license under the Dutch legislative framework
The Dutch Administrative Appeals Court (CBB) has confirmed the operating license of binary options brokerage Optionclub. The company has been in a lengthy battle with local authorities and in particular with The Netherlands Authority for the Financial Markets (AFM).
The financial regulator in the country has rejected the company’s application for a financial services provider on multiple occasions, with the latest rationale being that the company’s product resembles a game of chance.
With the Dutch company engaging in a lengthy battle with local regulators and courts for the approval of its financial services provider license, the result is final approval from the CBB.
EU-Wide Effects
The ruling of the Dutch court is expected to have profound effects on the industry as a whole, especially at a time when the Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) has become more stringent and is looking to rein in illicit practices in terms of sales and advertising.
The lawyers of Optionclub expect that the CBB judgement shall have important cross-border ramifications as well with regard to the interpretation and implementation of MiFID.
Previously, the Dutch Gambling Authority has denied any licenses to companies that are providing financial instruments which might have characteristics of games of chance.
Commenting on the announcement, the lawyers of Optionclub, Bas Jongmans and Hester Bais, said: "The final confirmation of the license today marks an important step in the development of regulation of binary options as financial instruments within the Netherlands, since with this issuance, AFM has confirmed that binary options shall be regulated by AFM in the Netherlands and as a result, licence holders shall be allowed to enter the European market, using a “European Passport”."
Too Little Too Late?
With Optionclub finally reinstating its license, the company could be facing a new hurdle, as the country’s Finance Minister Jeroen Dijsselbloem recently stated that the country could be looking to ban advertisement on “toxic investment products”. The Dutch AFM stated binary options and the risks associated with high Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term on contracts for difference (CFDs) do fall into this category.
While the advertisement ban is not EU-wide, the recent trends with France and speculation about similar discussions in Germany are worrying the industry. With time, the likelihood that high leverage and market making products will be limited from advertising is likely to increase.
The Dutch Administrative Appeals Court (CBB) has confirmed the operating license of binary options brokerage Optionclub. The company has been in a lengthy battle with local authorities and in particular with The Netherlands Authority for the Financial Markets (AFM).
The financial regulator in the country has rejected the company’s application for a financial services provider on multiple occasions, with the latest rationale being that the company’s product resembles a game of chance.
With the Dutch company engaging in a lengthy battle with local regulators and courts for the approval of its financial services provider license, the result is final approval from the CBB.
EU-Wide Effects
The ruling of the Dutch court is expected to have profound effects on the industry as a whole, especially at a time when the Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) has become more stringent and is looking to rein in illicit practices in terms of sales and advertising.
The lawyers of Optionclub expect that the CBB judgement shall have important cross-border ramifications as well with regard to the interpretation and implementation of MiFID.
Previously, the Dutch Gambling Authority has denied any licenses to companies that are providing financial instruments which might have characteristics of games of chance.
Commenting on the announcement, the lawyers of Optionclub, Bas Jongmans and Hester Bais, said: "The final confirmation of the license today marks an important step in the development of regulation of binary options as financial instruments within the Netherlands, since with this issuance, AFM has confirmed that binary options shall be regulated by AFM in the Netherlands and as a result, licence holders shall be allowed to enter the European market, using a “European Passport”."
Too Little Too Late?
With Optionclub finally reinstating its license, the company could be facing a new hurdle, as the country’s Finance Minister Jeroen Dijsselbloem recently stated that the country could be looking to ban advertisement on “toxic investment products”. The Dutch AFM stated binary options and the risks associated with high Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term on contracts for difference (CFDs) do fall into this category.
While the advertisement ban is not EU-wide, the recent trends with France and speculation about similar discussions in Germany are worrying the industry. With time, the likelihood that high leverage and market making products will be limited from advertising is likely to increase.