The Israel Securities Authority instructed a binary options trading company to immediately cease and desist operations until receiving a trading license.
The Court rejected the motion of the company and held that although the definition in the Israeli Securities Law is vague and it is not clear whether it includes trading instruments such as binary options (unlike shares), the purpose of the law teaches that it should apply to derivatives products, including binary options and over-the-counter instruments. The law is meant to protect investors in the market and balance the disparity of force between the securities issuer and the public, while emphasizing the importance of furnishing full information in order to allow investors who choose to invest their money in such instruments to be aware of the full rules, terms and risks involved. Therefore, the Israel Securities Authority has the authority to instruct the company to cease and desist its activity until obtaining a license to trade.