Smells Like Something’s Cooking – First Binary Options IPO?
Let’s set things straight first. I’m not talking about the first binary options broker to offer options on upcoming IPO’s, although the two are one in the same in a way. I am talking about the first binary options broker rumored to go public. Yes, a binary options brokerage has reached a size and respectability that enables it to contemplate a public offering of stock ownership. Which one am I talking about? AnyOption, one of the oldest and most cutting edge binary options brokers and platforms on the market today. Local reports in Cyprus and Israel, including the very reliable B2B source ForexMagnates, recently reported that markets insiders from within the binary options industry have confirmed that AnyOption is on the path leading to an initial public offering (as posted here). This broker, unlike the vast majority of binary options brokers on the market today, is a proprietary platform which is a leading reason why it qualifies for such an offering. Most other brokers use platforms that are licensed or “white labeled” from a parent company and not fully owned by the brokerage, providing a barrier for entry to the public market. The brand is owned and operated by Ourobourous Derivatives Trading, located in Cyprus and regulated by CySEC.
Not The First Forex Or Related Services Public Offering
AnyOption’s foray into the public realm is not the first one for the international derivative trading industry. Other high profile Forex platforms, brokers and services have paved the way leading to this move. There are a number of reasons for making a public offering including raising capital for business purposes, easier access to financing and also as an “Exit” for business founders to cut the interest for their hard work and investment. Two of the most visible to date include Plus500 and SafeCharge, with Forex copy trading platform eToro soon to follow. When you consider that these IPO’s have already been able to raise over $200 million it is easy to see why the move is so attractive to businesses. The massive and immediate injection of cash can provide the capital to fund a number of projects including the retirement of current executives.
Plus500 is a Haifa based Forex platform provider listed on the London Stock Exchange Alternative Investments Market. The initial offering raised over $75 million values the company at over $200 million. Similarly, SafeCharge, a payments processor, has also had a successful public offering. The company focuses on payment solutions for the Forex and gambling community and has rasied over $125 million. The company is also listed on the London Stock Exchange and part of the Cyprus Central Bank authorized payment institution system. The bank is global with about 200 employees worldwide and an estimated value of over $400 million. In addition to these, prominent copy trading platform eToro is in progress of moving its operations into its UK unit. The move is allegedly in preparation for an upcoming IPO, also on the London Stock Exchange. The company has filed reports with the UK regulatory bodies upping its capitalization and increasing the number of shares, according to reports from ForexMagnates.
How Will This Affect Binary Options?
How will this not affect binary options is more to the point. This could be the biggest thing to happen to binary options in its history with effects ranging from ownership to operations to trading. Now, hopefully, binary options and binary options businesses are going to be seen in a new way by business investors. Their ability to make money and create profits will earn the respect of investors and will undoubtedly lead to more and more brokers moving toward this goal. Based on reports I have been reading the IPO’s to date are all on the LSE which means that brokers seeking to take advantage may have to move and/or consolidate operations in the UK. What this means for binary options traders? It could mean a new level of brokers will emerge. Now, not only will a binary options brokers must be profitable, they’ll have to be sustainable and that means the shady, scammy and unscrupulous brokers will have a harder time operating. The bigger, established, publicly owned broker will have more reason to provide safe trading than ever; protecting shareholder value. ThatSucks.com (former BinaryOptionsThatSuck.com) team and I would keep tracking of the upcoming events, all you need to do is to make sure your drop by occasionally (: