Spread Betting Firms See Stocks Tumble in Wake of EU Crackdown

Written by:
Guest
Published on:
Dec/19/2017

A number of spread betting firms share prices fell sharply in recent days on news that the European financial regulator will begin cracking down on binary options and contracts for difference.

The Paris-based European Securities and Markets Authority (ESMA) said on Friday it was considering a ban on the marketing, distribution or sale to retail clients of binary options as well as imposing leverage restrictions and a guaranteed limit on client losses.

Plus500’s share price fell by 17% on Monday while CMC shares plummeted 14% and IG Group fells just over 12%.

In a statement the regulator said: “ESMA remains concerned that the risks to investor protection are not sufficiently controlled or reduced.”

The regulation of binary trading will switch from the Gambling Commission to the Financial Conduct Authority (FCA) effective January 2018.

A handful of countries, including Israel and Belgium, have banned binary options trading.  

Earlier this year, the binary trading market suffered a black eye following the abrupt closure of Banc De Binary and other firms

“It’s become the wild west in the past few months,” a company official told Finance Magnates. “Its just not worth the tarnished reputation. I don’t see how we can continue operating under such scrutiny and public image.”

A former US secret agent also revealed how he helped get back $2 million late last year for customers bilked by one binary firm.

In September 2016 it was revealed that two binary options businesses based out of Israel specifically targeted the vulnerable, telling staff to “rape clients out of their cash”. The binary options involved were AA Option and Inside Option.

- Aaron Goldstein, Gambling911.com

Gambling News

Massachusetts, Rhode Island Residents Await Sportsbook Opening

Massachusetts, Rhode Island Residents Await Sportsbook Opening

Those in and around the Boston area will soon have a sportsbook within a 40 minute to 1-hour drive should the New England Patriots be playing in the 2019 Super Bowl.  Providence residence are in even better luck as that sportsbook is set to open just 15 minutes outside the city limits.

Wagerers Crossing the Delaware (and Hudson) for Sports Bets

Wagerers Crossing the Delaware (and Hudson) for Sports Bets

In the time it takes for a red light to turn green, Leonard Sciascia can get his sports bets made, turn around and head home.

Airplane Banner Denounces Jets’ Partnership With MGM

An airplane banner criticizing the New York Jets’ gaming deal partnership with casino operator MGM Resorts International circled MetLife Stadium several times a few hours before the team’s game against the Buffalo Bills.

The Death of The Bookie!

Are you ready for the future of gambling in America? If you’re wondering how you can prepare for the upcoming flood of competitors trying to steal your lunch, this is going to be the most important message you’ll ever read!

The Remarkable Norwegian poker championship 2018 Held in Dublin

The Remarkable Norwegian poker championship 2018 Held in Dublin

Poker has become increasingly common among Norwegian players, as shown by the 2018 Norwegian Championships held in Dublin, which brought over 1200 players to the city.

Syndicate