About a year and a half ago a new regulatory regime regulating
trading rings entered into force, requiring the operators of
trading rings to obtain a regulatory license as a pre-condition to
operating them, and prohibiting the operation of a trading ring
without such a license. As part of this regulatory regime, the Securities Authority – which is the
regulator of the trading rings – reached a decision not to
approve trading in binary options in trading rings due to the
characteristics of the binary options and the trading rings.
The Securities Authority holds the position, as outlined in a
formal paper dated March 1, 2015, that a trading ring that is
solely interacting with clients from outside Israel and does not
allow Israeli clients to access the trading ring, is not subject to
this regulatory regime, even if managed from Israel, partially or
exclusively. According to this stance, the operation of a trading
ring for binary options, where all of the clients are
