Back when Israeli market regulators and some very vocal parties in the local media had just started pushing for a complete ban on the international marketing of binary options, we warned that the measure would cost thousands of well paying jobs for the Israeli economy. Now we are seeing confirmation that it’s not just call center jobs that are being lost, but software development and other key sectors too.
According to Finance Magnates sources familiar with the matter, TechFinancials (LON:TECH), the publicly listed trading technology provider for retail brokers of binary options, is now preparing for a possible restructuring that might include significant downsizing in Israel and the probable offshoring of many jobs.
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This comes as Israel is in the final stages of banning the international marketing of binary options by local firms. Last Sunday the ban (an amendment to the securities law) was approved by a ministerial legislative committee and this Monday it passed the first of three needed votes in the legislature, with thirty-one parliamentarians voting for the move and none opposing it.
After a string of Israeli binary options brokers and call centers have shut down, TechFinancials is the first technology provider that seems to be heading in the same direction. It will most likely not be the last. Fellow software development houses such as SpotOption and PandaTS are facing the same situation and could be forced to follow suit.
As of the time of publication, TechFinancials declined to comment, but we will update if and when it does.