Forex Magnates has learned that a consortium comprised of a number of binary options brands, possibly sharing similar ownership, is attempting to become a publicly traded firm via an Initial Public Offering (IPO). The venue for the enterprise is most likely to be the Alternative Investment Market (AIM) of the London Stock Exchange (LSE).
TraderXP is one of the larger brands that is assumed to be involved with the group aiming to go public. The brand’s website cites no regulation credentials, and in September 2013 the Cyprus Securities and Exchange Commission (CySEC) issued a warning stating that the company does not have its regulatory certification.
A binary options trading brokerage on the scale of TraderXP is estimated to generate an average of $2-4 million in monthly revenue according to various market sources. Along with similar sums from other brands partnering for an IPO, the total revenue of the group could total $6-8 million per month, resulting in a potential market value of $300-400 million.
The attempt at the London Exchange could be accompanied by an internal group restructure, or some brands exchanging ownership in order to meet all necessary requirements when commencing compliance procedures.
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A binary consortium going public will have a notable effect in an industry which is increasingly trying to gain public acknowledgement and exposure. One course of action in this regard is sponsoring prominent sport clubs, such as 24Option partnering with Juventus. Last Friday, Forex Magnates reported a similar deal that EZtrader struck with Bayer Leverkusen and Feyernood. The aim of such a costly marketing endeavor is to magnify the brand repeatedly in light of a prospective IPO.
The lion’s share of brands involved in the consortium is said to be the Spotoption platform, which may see such a step as an encouraging sign in terms of going public itself, a frequently rumored prospect.
IPOs have recently become a hot topic in the forex and binary options space, and will take center stage in a dedicated panel at the upcoming Forex Magnates’ London Summit. Companies caught up with the “IPO fever” hope to follow in the footsteps of Plus500, which has almost quadrupled in value since going public last year. With AnyOption‘s IPO’s intentions yet to materialize, will this new group be the binary options arena’s new player in the ring?