EUBOA – European Brokers Association

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EUBOA – European Brokers Association

Binary Option industry creates EUBOA

As the binary options landscape starts to mature, some of the largest organisations in the industry have come together to form EUBOA – The European Brokers Association. Here, we explain who is involved, and what the aims of this new body are.

What is EUBOA?

The binary options industry is still in it’s infancy, relative to other forms of investment. This has led to substantial ‘growing pains’ as well as a number of episodes which have severely damaged the image of both the industry and the investment vehicle itself.

The European Brokers Association (EUBOA), was created in the late summer of 2020. The aims are simple:

  • Establish a manifesto and code of conduct
  • Communicate directly with European regulators
  • Improve the image and professionalism of the industry

2020 saw a host of regulators impose harsh restrictions, or even complete bans, on binary options. This was in response to the number of fraudulent operators working in binary options, and the scale of complaints regulators were seeing. Largely from unregulated or unlicensed operators.

Legitimate brokers are keen to restore the image of binary options, but realise there is much to be done in order to restore faith in the industry. They hope the EUBOA will give them a strong, self-regulatory platform. From here, the aim will be better dialogue with regulators, with the objective of creating a number of ‘best practices’ among binary brokers and much improved customer service.

Who is involved in EUBOA?

Most of the established binary options firms, or platform providers are involved:

Brokers

  • IQOption
  • Banc de Binary
  • 24Option
  • AnyOption

Platform Providers

  • TechFinancial
  • SpotOption

This represents a large proportion of the binary options market share, and therefore gives the EUBOA plenty of clout.

What are the frequent binary options complaints?

Some of the issues facing this new body, will include:

  • Marketing channels, Affiliates and the miss-selling of binary options. A huge problem in binary options is the marketing of binary options as a “get rich quick” scheme. This form of marketing is often used by affiliates, but also by the brokers themselves. Often referred to as ‘funnels’, they grossly misrepresent the high risk nature of binary options and mislead potential customers.
  • Unlicensed subsidiaries running within regulated brokers. This has been a very common problem. A broker regulated in the EU, would move traders who reside outside of the EU, to an unregulated subsidiary. This allows the broker to get around regulatory restrictions that apply in the EU, and puts the trader at significantly greater financial risk.
  • Unregulated brokers using the software and services of platform providers. New brokerages will often setup as a ‘white label’, using the trading platform of a third party provider. These white labels are normally unlicensed and unregulated. They are also the most likely place to find unlawful or unethical behaviour. While the platform provider does not have absolute control over how these firms use their platform, the EUBOA will hope that via best practise and code of conduct guidelines, they will play a bigger part in ensuring the quality of the operators using their platform.

What should we expect from EUBOA?

It will be very interesting to see how this develops. Binary options firms are clearly concerned with the recent rise in regulatory pressure. It would however, take a huge amount of optimism to think that the industry could be self-regulatory at this stage.

The problems in binary options are many and widespread, so much so that the investment vehicle itself – the very concept of a “binary option” – has been tainted. While the setting up of EUBOA looks positive, those parties involved could do well to resolve the issues within their own businesses before suggesting a ‘code of conduct’ for others.

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The appointment of Bjorn Krog Andersen is encouraging however. With 6 years experience in Legal and Compliance at Saxo Bank, and previous experience working in the law, his appointment does signal that the new body is going to be serious in tackling the issues in the industry.

EUBOA Meets to Establish Manifesto for Binary Options Trading Industry

Members of the Association have met to discuss guidelines, code of conduct and interaction with regulators.

The second meeting of the Board of the European Brokers Association (EUBOA) took place in Limassol, Cyprus on 10th October in which the founder members attended to discuss key issues that will form the purpose and aims of the Association. These included its manifesto, code of conduct and interaction with regulators.

Guidelines

The manifesto sets out to ensure binary options trading conforms to a basic set of guidelines and behaviour which seek to eradicate malpractices that are harmful to customers and also to encourage the regulation of the industry in a way that is deemed appropriate in given jurisdictions.

The Association is working on the development of a code of conduct for members to follow and adhere to that will help them to better implement best practices in binary options trading.

All participants were reported to be in agreement that this was required in an industry that is growing so rapidly but is still only partially regulated.

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Also agreed to be a priority was the encouragement of regulators across Europe to be open to dialogue with the EUBOA. The Board is currently liaising with all regulated brokers to encourage participation as members in what is widely seen to be in the best interest of the growth and professionalisation of the industry.

Meetings of the Board will be held regularly over the coming months to ensure the rapid implementation of the code of conduct and the opening of discussions with regulators.

Background

Established in 2020, EUBOA is the self-regulatory organisation of the binary options trading industry and is charged by its members with encouraging best practice and standards that protect customers in binary trading.

The Board of the Association includes representatives from the leading regulated organizations in the industry including, iq option, Banc de Binary, Rodeler (24option), anyoption, and technology platforms TechFinancials and SpotOption.

The key focus and remit of the EUBOA is to interact with regulators, to ensure that members adhere to its code of conduct aimed at eradicating bad practices, and to encourage market participants to become members.

consulting for transition

We represent

The sugar trading industry at EU level, and regularly advise the EU institutions on all relevant matters affecting the sugar trade. Through our extensive membership, we represent over 60 companies trading sugar.

ASSUC is the representative body of the European sugar trade. In the interest of our members and in cooperation with the EU institutions and other stakeholders, we focus on continuously improving technical details of EU policies in order to promote a well-functioning sugar market.

We specialise

In European policies and regulations with strong connections to decision makers at European level.

Knowledge is key in sugar trade. We offer our members valuable insights into the EU agricultural, trade and custom policies, as well as other areas relevant for the trade such as new EU rules on VAT, regulations on financial and derivatives markets, and BREXIT. We also monitor international fora such as the WTO and the G20.

We participate

In official meetings organised by the EU institutions to provide our expertise on market issues.

We take part to the meetings of the Civil Dialogue Group organised by the European Commission, and we are members of the Expert Group of the EU Sugar Market Observatory where we advocate the views and good reputation of the sugar trade on behalf of our members. We also participle in other relevant meetings for the EU sugar trade representing the interests of our members.

We organise

Every year we invite our members to Brussels for our Annual General Meeting followed by an acclaimed Cocktail reception & Dinner attended by Key industry representatives, Company Executives, and EU officials.

The next ASSUC General Assembly will take place on 27 May 2020 in Brussels. Contact us if you are interested to attend.

The ASSUC Board of directors gathers three to four times a year to discuss strategic affairs.

Become a member

ASSUC members benefit from our expertise through policy and technical support, and the secretariat makes sure that EU institutions and stakeholders have a good understanding of the market specificities.

ASSUC offers two types of membership:

Full membership to associations in any European country recognized as having a continued interest and involvement in the EU sugar trade. Only Full Members have the right to vote at the General Assembly and are members of the Board of directors.

Affiliate membership to associations or companies, even if they are domiciled outside Europe, which are active in the sugar trade.

Want to join us?

Contact your association in your European country listed below or leave us a message and we’ll be happy to support you!

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