Finance Magnates has learned that SpotOption is ceasing its FX and contracts for differences (CFDs) business lines. The move comes just six months after the trading software provider shut down its binary options business. The white label solution will not be available after August.

SpotOption used to provide trading platforms for 50 percent of all binary options trading platforms. In October of last year, however, the Israeli government passed legislation banning binary options sales outside of the country.

The legislation, which went live in January, was enacted after the Israeli government stated the industry was causing significant damage to the country’s reputation. As a result, SpotOption, which is based in Israel, stopped providing software that supported binary options trading.

Rebranding

The firm may have seen the writing on the wall with regard to the binary options business sometime before the Israeli legislation was passed. The firm launched a CFDs trading platform in November of 2016.

A month after Israeli legislation was passed, the firm launched a subsidiary, OTC Book, a Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term provider for the CFD, FX and cryptocurrency markets. It appears that this division of the business will be shutting down too.

The precise reasons behind SpotOption’s decision to cease its CFD and FX activities remain unclear. It seems possible that it is a result of the European Securities and Markets Authority’s recent clamp down on the retail trading industry.

A large number of firms within the retail industry are closing down or moving offshore as a result of the legislation that bans binary options and puts heavy restrictions on leveraged CFD and FX trading. Whether or not ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term's legislation is the key reason for SpotOption stopping its CFD and FX activities is uncertain. However, it is reasonable to think it certainly has had an impact on their business.