License (next?) Binary options broker suspended by CySEC

CySEC, the Cypriot institution responsible for the local financial market, announced at the end of last week about the suspension of the binary options broker - OptionRally Financial Services. The reasoning behind this decision is suspected violation of the so-called provisions regarding the authorization agreement, which may allegedly threaten the interests of customers.

Broker's activity frozen

The broker cannot conclude new business agreements or acquire new clients. It may not execute and transmit any orders related to the purchase of financial instruments of any type. The suspension of the license is also the inability to provide investment services in Cyprus and beyond. Advertising activity, i.e. conducting marketing campaigns, advertising campaigns, and even publishing statements in connection with financial services, cannot be carried out. Not only that, all open positions of clients must be closed, and the broker himself is obliged to place an appropriate message regarding the suspension of the license on his website.

Message regarding the suspension of licenses on the OptionRally.eu website

In the case of binary options, usually we are dealing with short-term positions, however, you can imagine how much is a serious marketing blow for the company itself.

Week for changes

The regulator indicates that the broker was to violate the provisions regarding duties belonging to the owners of brokerage houses, their own financial reserves, as well as maintaining capital collateral in relation to the customer deposits paid at the appropriate level. As a result, OptionRally must take urgent action, as soon as a week, to enable it to meet the above-mentioned criteria. Otherwise, the consequences may turn out to be much more severe.

The official CySEC message