Regulators in Israel have finally issued initial licenses to five trading firms.
Israel Securities Authority Issues First Batch of Retail Trading Licenses
The long-awaited Trading Arena License was awarded to five firms including FXCM Israel, Plus500, First Index and Real Forex, who were among a long list of applicants seeking to obtain the license.
Up to 21 companies applied for the license following approval by Israeli lawmakers to allow the ISA to regulate the online trading market.
However, seven firms had their application rejected while another six withdrew their applications on their own accord. eToro, which has headquarters in Israel as among the firms that withdrew their applications.
Other firms including Colmex, Trade Capital Markets Ltd and Protrade are still waiting for the ISA’s final decision pertaining to their application.
According to the regulators, any company that does not have the new Trading Arena License or whose license has not yet been approved cannot legally offer retail margin trading.
In a statement Avi Abuganny, CEO of FXCM Israel said, “We are very happy to have received the license and we are looking forward to fair and effective regulation of the industry in Israel.”
He added, “We have supported the regulatory process from the start and we believe it will have a positive impact on the face of the market. It will also create regulated trading opportunities, transparency and stability for traders in Israel.
Mr. Abuganny further said that his firm was keen on continuing to provide their clients with quality service, tools and support.
Future of binary options
In the last year, the ISA has been looking at applications to obtain own-account financial trading licenses by firms in the industry. The regulator has been adamant that all applicants whose services include binary options products remove such products and stop offering online binary options trading services; otherwise, they will have their application automatically rejected.
Undoubtedly, this will be a blow to the binary options market in Israel, requiring stakeholders to evaluate their future in the industry.