With regard to a binary option, it was clarified in the same matter that: "Grants the holder the right to receive a fixed amount of money that was agreed upon at the time of the creation of the transaction. It can be of the put type or of the call type - a call option or a put option. In the case of a call option, the buyer of the option is entitled to the amount determined if the option expires "within the money", i.e., if the price of the underlying asset on the expiration date is higher than the exercise price set at the time the transaction was created. The binary option allows only two modes - hence its name. Due to its characteristics, it is possible to describe to the buyer of the option what the percentage of return would be if the option expired "within the money" (i.e., when it is worthwhile to exercise it); And the buyer also knows what the risk is in investing in an option, a risk that is reflected in its purchase price."
In the same matter, the Petitioner operated an Internet Arena, which is a collaborative technological platform that enables multilateral trading in binary options that was carried out between bidders and bidders. As for the platform, it was clarified that "it is the 'market' that brings together the parties to the transaction - the bidders and bidders, the option writers and the buyers. The Petitioner is an intermediary in these transactions. However - and unlike other platforms - the Petitioner is not a party to the transactions carried out through it. The Petitioner does not write options and does not sell them from her own account or purchase options for her own account. In other words, the Petitioner facilitates the trade, but it is not a party to it.
As to the manner in which trading on the platform is conducted, it was clarified in paragraphs 4-7 regarding Fairtrade:
"Trading is conducted according to fixed meeting rules that do not involve discretion in the manner in which the transaction ends. The Petitioner allows users of the system to offer (write) options to the public. The authors of the options are entitled, within the limits set by the Petitioner from time to time, to write options detailing the underlying asset, the rate of return, the amount of the option offer, the type of option (purchase or sale) and the expiration date of the option.
- Upon the publication of the option, the account of the option writer will be charged the amount of his obligation. After the option is published, its details are published on the Petitioner's platform, and the user public can decide whether to purchase the option, in whole or in part. All payments transferred to the Petitioner by the Users are held until they are cleared in the Petitioner's operating account. The Petitioner does not use them except in accordance with the terms of use only.
- When a user of the Platform confirms that he accepts the terms of the option, a transaction is entered into between him and the author of the option, and he becomes a purchaser. The nominal return in the transaction, as well as the other terms of the transaction, are determined by the option writer, with the exception of the investment amount determined by the purchaser, and may be higher or lower than the amount that the option writer wishes to offer. When the amount of the purchaser's investment is less than the amount of the writer's offer, the balance beyond the amount of the transaction executed is offered to other buyers. In other words, the option writer can sell a single option to a number of different buyers. A single buyer can purchase more than one option.
- Trading takes place not only at the time of the issuance of the options, but also at the time of their expiration. At the expiration date of the option, the system checks whether the condition set between the option writer and the option purchaser has been met. Depending on the question of whether the condition was fulfilled or not, the Petitioner will transfer the amount of the option and the amount of the obligation to the party that is entitled to them. Insofar as it is not expressly determined otherwise, the determining rate in relation to each transaction will be the price of the underlying asset as it is displayed in the system at the time of approval of the purchase of the option by the option purchaser, which originated from the relevant quote.
The general public can buy and sell options and thus hedge their positions continuously and simultaneously."