OptionRally Undercapitalized CySEC Outlines Client Money Violations

The Cyprus Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission has just suspended the operating license of OptionRally. The binary options brokerage, which at one point announced a deal to sponsor Formula 1 team Ferrari, is facing substantial operational difficulties.

The reason for the suspension of OptionRally’s license is the company’s possible non-compliance with client fund protection rules. According to 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’s communique, the company also might have been undercapitalized under the criteria set out in Cypriot law.

CySEC outlines in its announcement that the company is mandated to get its house in order within one week.

OptionRally has been showing weakness in recent months as the company laid off a number of employees at the end of last year. The company was also already fined by CySEC over misleading marketing materials on its website.

Binary Options Hammered Once Again

CySEC’s announcement is yet another blow to the regulated binary options industry. Several regulated brokers have been fined and a number of companies have been booted from the industry either by their own dismal reputation or by the growing negative reputation of the product.

According to CySEC, OptionRally might have never been in compliance in the law, with the announcement outlining “possible non compliance, at all times”. Both client fund protection and capital requirements may have been violated.

At present, CySEC regulated subsidiary OptionRally (www.optionrally.eu) is not allowed to operate in any capacity. The company’s website states that the license of the firm is suspended until the 20th of July.

OptionRally.com Still Operational

CySEC’s decision does not affect the global website of the brokerage (www.optionrally.com), which is owned by an entity called TCM Investments. The website is fully operational and purports to be regulated in Belize. There are no announcements that would lead one to think that the site is facing any operational difficulties.

The global website of OptionRally purports to be operating under the jurisdiction of the Belize International Financial Services Commission (IFSC). If that is the case, apparently there has been lack of coordination between the Cypriot and Belizean authorities on this matter.

The suspension of OptionRally’s license is dated today (13th of July, 2017). Finance Magnates has reached out to OptionRally for a comment, but at the time of publication has not received an official response from the management.