CySEC Regulates Binary Options Trading

It was recently announced that CySEC would be regulating Binary Options and vetting applications from brokerage firms for this much sought after certification. CySEC's decision to recognize that Binary Options fall within the purview of the Investment Services and Related Activities Law (2007-2009) has stirred great interest in a rapidly growing industry. The exponential growth of Binary Options in the wake of the SEC's announcement that they were to be listed by the Chicago Board of Trade in 2008 is more than likely to be repeated now with a new generation of online platforms that have come to the market in the past few years.

What is CySEC?

CySEC, or The Cyprus Securities and Exchange Commission, is the financial regulatory body of The Republic of Cyprus. CySEC became a public corporate body in 2001 and is responsible for granting licenses and regulating financial firms based on the island. They also provide ongoing supervision in order to ensure that companies maintain standards and continue to operate according to the criteria that had to be met for CySEC certification in the first place. The body has the authority to impose sanctions on firms that fail to do so, with a company's repeated failure to comply eventually resulting in their CySEC license being revoked.

Cyprus's 2004 induction into the European Union has resulted in an increased number of applications for regulation. This is partly because upon joining the E.U CySEC joined MiFID (Markets in Financial Instruments Directive), which grants companies with CySEC certification entry into European markets. As a result, since 2004 there has been a marked increase in the number of companies registering themselves in Cyprus, the majority of these being Forex brokerage firms, but with the growing interest in Binary Options the most recent wave of companies to base themselves on the island have been Binary Options brokerages.

CySEC Announcement:

Initially CySEC was reluctant to disclose whether it would be regulating Binary Options but this changed with an announcement made on 5 May 2012 emphatically stating that CySEC would indeed be regulating the trading of Binary Options. This was big news in an industry that had hitherto been completely unregulated.

What this means for the Industry:

Binary Options regulation is a boon for an already booming industry. The recognition of Binary Options as legitimate financial products by CySEC means that standards will inevitably rise. The most reputable firms are bound to become evermore visible while other less reputable ones will soon be weeded out. Also on the retail end regulation provides a previously lacking sense of security to the consumer, who can now rest assured that they are protected when they deal with CySEC license holders. In addition to this MiFID makes it possible for all firms that receive CySEC regulation to passport their certificates into all other European Member states. This is likely to result in the further growth of an industry that has already grown beyond all expectations.


Banc De Binary is the first to Receive CySEC Regulation

To date only Banc de Binary has managed to receive CySEC certification, placing itself in an enviable position in the Binary Options industry. Banc de Binary, one of the first companies to offer Binary Trading to the consumer market, was founded out of a small office in New York by a group of four brokers. It now boasts four offices globally with more due to be opened in the forthcoming year. The company has been responsible for innovating Binary Options for the online market. It prides itself on transparency and customer service, having quickly grown to hold the lion's share of the Binary Options market. CEO Oren Laurent has openly discussed his desire for Binary Options to start rivaling traditional Forex trading within the next