PRELIMINARY INJUNCTION OBTAINED IN BINARY OPTIONS CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
SEC Obtains Preliminary Injunction in Binary Options Case

The U.S. Securities and Exchange Commission announced that on July 30, 2013, the U.S. District Court for the District of Nevada issued an order granting a preliminary injunction and other relief against Banc de Binary Ltd., a Cyprus-based company that operates an online binary options trading platform.

The Commission's complaint, filed on June 5, 2013, alleges that Banc de Binary has been offering and selling binary options to investors across the U.S. without first registering the securities as required under the federal securities laws. The company has broadly solicited U.S customers by advertising through YouTube videos, spam e-mails, and other Internet-based advertising; and Banc de Binary representatives have communicated with investors directly by phone, e-mail, and instant messenger chats. Banc de Binary also has allegedly been acting as a broker when offering and selling these securities, but failed to register with the SEC as a broker as required under U.S. law.

At the SEC’s request, the Court issued an Order preliminarily enjoining Banc de Binary from offering or selling unregistered securities in violation of Section 5 of the Securities Act of 1933 and acting as an unregistered broker-dealer in violation of Section 15(b) of the Securities Exchange Act of 1934. In its Order, the Court concluded that binary options are “securities” subject to regulation by the Commission.